The Roblox Securities Violation Lawsuit: What You Need to Know

by Annabelle Stephenson
in *AR, *JP, *PT, *RU, *TR, Action, News, xFI, xHR, xLV, xRS
on 23 January 2024

Pozew o naruszenie papierów wartościowych przeciwko Roblox Corporation

January 23, 2024 / PRNewswire – Levi & Korsinsky Law Firm notifies investors of Roblox Corporation (“Roblox” or “the Company”) (NYSE: RBLX) of a filed class-action lawsuit regarding securities violation. In this informative article, we provide the key details and a comprehensive FAQ section to help you understand the case.

Case Overview

The class-action lawsuit aims to recover losses suffered by Roblox investors who were allegedly affected by securities fraud. The suit seeks to protect the interests of all individuals or entities that acquired or otherwise obtained Class A common shares of Roblox between March 10, 2021, and February 15, 2022.

[Learn more about the case here](https://zlk.com/pslra-1/roblox-corporation-lawsuit-submission-form?prid=64360&wire=4)

Investors of RBLX can also contact Joseph E. Levi, Esq. via email at [email protected] or by phone at (212) 363-7500.

Details of the Case

In the filed suit, it is alleged that the defendants made false statements and/or withheld information that:

The Roblox platform was inadequately controlled in terms of content, and lacked user spending restrictions.
These insufficient controls allowed younger Roblox users to play games with inappropriate content and make excessive, unauthorized purchases of Robux.
A significant portion of Roblox’s revenues and revenue growth stemmed from these excessive, unauthorized Robux purchases.
Revenue and revenue growth in the fourth quarter of 2021 and 2022 would be negatively impacted by Roblox’s planned implementation of enhanced parental controls.
Based on the above, the Company’s revenue growth was unsustainable throughout the period covered by the lawsuit.

Frequently Asked Questions (FAQ) Regarding the Roblox Securities Violation Lawsuit

What does the filed class-action lawsuit against Roblox Corporation involve?

The lawsuit aims to recover losses suffered by Roblox investors who were allegedly affected by securities fraud.

Who may be included in this lawsuit?

The lawsuit seeks to protect the interests of all individuals or entities that acquired or otherwise obtained Class A common shares of Roblox between March 10, 2021, and February 15, 2022.

How can I contact Levi & Korsinsky law firm regarding this lawsuit?

You can contact the Levi & Korsinsky law firm through their [website](https://zlk.com/pslra-1/roblox-corporation-lawsuit-submission-form?prid=64360&wire=4), via email at [email protected], or by phone at (212) 363-7500.

What are the details of the case presented in the lawsuit?

The lawsuit alleges that the defendants made false statements and/or withheld information regarding the inadequate content control on the Roblox platform, enabling unauthorized purchases and inappropriate game experiences for younger users, while a significant portion of the Company’s revenue relied on these unauthorized transactions. The planned implementation of enhanced parental controls was expected to negatively impact revenue and revenue growth.

How can I become the lead plaintiff in this lawsuit?

If you have incurred losses as a result of investing in Roblox during the specified period, you have until January 26, 2024, to request to be appointed as the lead plaintiff. Participation in any potential compensation does not require serving as the lead plaintiff.

Is there any cost associated with participating in the proceedings?

If you are a member of the class, you may be entitled to compensation without incurring any costs. There are no fees or obligations associated with participating in the proceedings.

Key Term Definitions

Company: Refers to Roblox Corporation.
Security: Refers to Class A common shares of Roblox.
Investor: Refers to individuals or entities that acquired or otherwise obtained Class A common shares of Roblox between March 10, 2021, and February 15, 2022.
Robux: Virtual currency in the Roblox game.
Parental Controls: Mechanisms and restrictions aimed at protecting younger users from inappropriate content and excessive spending of virtual currency in the game.