Grabar Law Office Investigates Claims on Behalf of Shareholders of Roblox Corporation (RBLX)

Philadelphia, Pennsylvania--(Newsfile Corp. - December 5, 2023) - A recently filed securities fraud class action complaint alleges that Roblox Corporation (NYSE: RBLX), via certain of its officers and directors, made material misrepresentations to investors concerning Roblox's bookings growth and the adequacy of its user protection controls. User protection controls are a particular concern for the Company as about half of the Company's users are under the age of 13, thus exposing Roblox to various Federal Trade Commission ("FTC") regulations and other online gaming laws that are geared toward protecting minors.

Specifically, it is alleged that the Company misrepresented or failed to disclose that:(1) the Roblox platform had insufficient content controls and lacked user spending restrictions; (2) these inadequate controls enabled younger Roblox users to play games with inappropriate content and make excessive, unauthorized Robux purchases; (3) a material portion of Roblox's bookings and revenue growth was due to these excessive, unauthorized Robux purchases; (4) fourth quarter 2021and 2022 bookings would be negatively impacted by Roblox's planned rollout of enhanced parental controls; and (5) based on the foregoing, the Company's bookings and revenue growth was unsustainable.

Current Roblox shareholders who have held Roblox stock since on or shortly after the Company's March 10, 2021 direct listing, can seek corporate reforms, the return of funds spent defending litigation back to the company, and a court approved incentive award at no cost to them whatsoever.

If you would like to learn more about this matter, you are encouraged to visit https://grabarlaw.com/the-latest/roblox-shareholder-investigation/, contact Joshua H. Grabar at jgrabar@grabarlaw.com, or Mia Heller at mheller@grabarlaw.com, or call 267-507-6085.

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Contact:
Joshua H. Grabar, Esq.
Grabar Law Office
One Liberty Place
1650 Market Street, Suite 3600
Philadelphia, PA 19103
Tel: 267-507-6085
Email: jgrabar@grabarlaw.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/189877