Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against Roblox Corporation (RBLX)
NEW YORK, Jan. 22, 2024 (GLOBE NEWSWIRE) — Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of all persons or entities who purchased or otherwise acquired Roblox Corporation (“Roblox” or the “Company”) (NYSE: RBLX) securities between March 10, 2021 and February 15, 2022, inclusive (the “Class Period”).
The Complaint alleges that Defendants made false and/or misleading statements and/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 2021 and 2022 bookings would be negatively impacted by Roblox’s planned rollout of enhanced parental controls; and (5) as a result, Roblox’s bookings and revenue growth was unsustainable throughout the Class Period.
On February 15, 2022, Roblox disclosed poor fourth quarter 2021 results, including $770.1 million in bookings which was well short of the $786.8 million analyst consensus target. Key performance indicators on audience size and engagement both showed sequential and year-over-year declines, according to the complaint. On this news, the price of Roblox stock fell more than 26%.
Investors who purchased or otherwise acquired shares of Roblox should contact the Firm prior to the January 26, 2024 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at [email protected] or [email protected].
Please visit our website at http://www.gme-law.com for more information about the firm.
