DiCello Levitt LLP Announces Investor Class Action Lawsuit Filed Against Roblox Corporation (NYSE: RBLX) and Lead Plaintiff Deadline

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Nov 29, 2023, 12:00 ET

SAN DIEGO, Nov. 29, 2023 /PRNewswire/ -- DiCello Levitt LLP announces that purchasers or acquirers of Roblox Corporation (NYSE: RBLX) Class A common stock between March 10, 2021 and February 15, 2022, inclusive (the "Class Period") have until January 26, 2024 to seek appointment as lead plaintiff of the Roblox class action lawsuit. The lawsuit claims Roblox and certain of its senior executive officers with violations of the Securities Exchange Act of 1934.

If you purchased shares of Roblox Class A common stock between March 10, 2021 and February 15, 2022, suffered substantial losses and you wish to serve as lead plaintiff in this lawsuit, you may submit your information here: https://dicellolevitt.com/securities/roblox/.

You can also contact DiCello Levitt partner Brian O'Mara by calling (888) 287-9005 or at [email protected].

The class has not been certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor's ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.

Allegations

Roblox (or the "Company") operates a video game platform that provides developers with tools to create games that are hosted on the Company's servers. Roblox generates revenue by selling its proprietary currency (called "Robux") to its users so they can purchase digital items (e.g., weapons or vehicles) to enhance their gaming experiences. 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.

The Roblox lawsuit alleges that, throughout the Class Period, Roblox reported strong bookings and revenue growth and attributed this growth to various factors, including the positive effect from COVID stay-at-home orders, its technology investments, and "high-quality" gaming content. However, Defendants misled investors by failing to disclose that a material portion of Roblox's growth was due to weak content controls and the lack of spending restrictions on its platform. These inadequate controls enabled younger Roblox users to play games with inappropriate content and make unauthorized Robux purchases which translated into unsustainable levels of bookings and revenue.

In late September 2021, Roblox began to roll out enhanced user controls on its platform, including new controls that allowed parents to place monthly spending caps on their children's Robux purchases. Unbeknownst to investors, the implementation of these enhanced controls would inevitably cause Roblox's bookings growth to decelerate in the fourth quarter of 2021 and throughout 2022. On February 15, 2022, the truth about the Company's unsustainable growth was revealed to investors when Roblox reported surprisingly weak fourth quarter 2021 results. Most of Roblox's key metrics missed analysts' expectations, including quarterly bookings and revenue, causing Roblox stock to plummet by $19.43 per share, or 26.5%, to close at $53.87 per share on February 16, 2022.

About DiCello Levitt

At DiCello Levitt, we are dedicated to achieving justice for our clients through class action, business-to-business, public client, whistleblower, personal injury, civil and human rights, and mass tort litigation. Our lawyers are highly respected for their ability to litigate and win cases—whether by trial, settlement, or otherwise—for people who have suffered harm, global corporations that have sustained significant economic losses, and public clients seeking to protect their citizens' rights and interests. Every day, we put our reputations—and our capital—on the line for our clients.

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SOURCE DiCello Levitt LLP