Wolf Haldenstein Adler Freeman & Herz LLP announces that it is investigating Roblox Corporation for potential violations of federal securities laws
NEW YORK, Nov. 01, 2024 (GLOBE NEWSWIRE) -- Wolf Haldenstein Adler Freeman & Herz LLP ("Wolf Haldenstein"), a preeminent national shareholder rights litigation firm, announces that it is investigating potential securities claims on behalf of purchasers of Roblox Corporation (NYSE: RBLX) (“Roblox” or the “Company”)
Roblox Corporation develops and operates an online entertainment platform in the United States and internationally. It offers Roblox Studio, a free toolset that allows developers and creators to build, publish, and operate 3D experiences, and other content; Roblox Client, an application that allows users to explore 3D experience; and Roblox Cloud, which provides services and infrastructure that power the platform.
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On October 8, 2024, Hindenburg Research (“Hindenburg”) published a report that Roblox was both inflating its metrics and failing to protect child safety. It apparently was conflating “people” with “daily active users” (“DAUs”), the latter of which can often represent bots or alternate accounts – therefore inflating the number of actual human individuals using the platform.
Hindenburg says that Roblox basically had two sets of books – one counting single users and one counting DAUs, the latter of which was reported to the United States Securities and Exchange Commission (“SEC”). Hindenburg also alleged that the company was inflating engagement hours in its reports and was ignoring widespread sexual grooming and adult content. As an example, the Hindenburg reports states that it found a group called “Adult Studios” that had more than 3,000 members openly trading child pornography and soliciting sexual acts from minors.
Roblox shares fell as much as 9% after Hindenburg released the report.
Wolf Haldenstein has experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas, and offices in New York, Chicago, Nashville and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly lauded by the courts, which have appointed it to major positions in complex securities, multi-district and consolidated litigation.
If you wish to discuss this investigation or have any questions regarding your rights and interests, please immediately contact Wolf Haldenstein by telephone at (800) 575-0735 or via e-mail at classmember@whafh.com.
Contact:
Wolf Haldenstein Adler Freeman & Herz LLP
Gregory Stone, Director of Case and Financial Analysis
Email: gstone@whafh.com or classmember@whafh.com
Tel: (800) 575-0735 or (212) 545-4774
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