A lawsuit was filed on behalf of investors in Roblox Corporation (NYSE:RBLX) shares over alleged securities laws violations.

San Diego, CA -- (SBWire) -- 12/12/2023 --An investor, who purchased shares of Roblox Corporation (NYSE: RBLX), filed a lawsuit over alleged violations of Federal Securities Laws by Roblox Corporation.

Investors who purchased shares of Roblox Corporation (NYSE: RBLX) have certain options and for certain investors are short and strict deadlines running. Deadline: January 26, 2024. NYSE: RBLX investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

San Mateo, CA based Roblox Corporation develops and operates an online entertainment platform. Roblox Corporation generates revenue by selling its proprietary currency (called "Robux") to its users so they can purchase digital items (e.g., weapons, armor, or vehicles) to enhance their gaming experiences.

In late September 2021, Roblox Corporation began to roll out enhanced user controls on its platform. Among other things, these new controls allowed parents to put monthly spending limits on their children's Robux purchases.

The plaintiff alleges that 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, Roblox Corporation reported surprisingly weak fourth quarter 2021 results. Most of Roblox's key metrics missed analysts' expectations, including quarterly bookings and revenue,

The plaintiff claims that between March 10, 2021 and February 15, 2022, the 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 and that 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.

The plaintiff further alleges that statements made by Defendants between March 10, 2021 and February 15, 2022 were materially false and misleading when made because they misrepresented or failed to disclose that the Roblox platform had insufficient content controls and lacked user spending restrictions, that these inadequate controls enabled younger Roblox users to play games with inappropriate content and make excessive, unauthorized Robux purchases, that a material portion of Roblox's bookings and revenue growth was due to these excessive, unauthorized Robux purchases, that fourth quarter 2021 and 2022 bookings would be negatively impacted by Roblox's planned rollout of enhanced parental controls, and that based on the foregoing, the Company's bookings and revenue growth was unsustainable between March 10, 2021 and February 15, 2022.

Those who purchased shares of Roblox Corporation (NYSE: RBLX) have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com

About The Shareholders Foundation
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.