16/10/2024 | Wolf Haldenstein Adler Freeman & Herz LLP Announces It Is Investigating Roblox Corporation for Potential Violations of Federal Securities Laws

NEW YORK, NY / ACCESSWIRE / October 16, 2024 / Wolf Haldenstein Adler Freeman & Herz LLP (“Wolf Haldenstein”), a leading 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. 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 the 3D experience; and Roblox Cloud, which provides services and infrastructure that power the platform.

CLICK HERE TO PROVIDE YOUR CONTACT INFORMATION

On October 8, 2024, Hindenburg Research (“Hindenburg”) published a report that Roblox was inflating its metrics and failing to protect children’s safety. It was apparently confusing “people” with “daily active users” (“DAUs”), the latter of which can often represent bots or alternative accounts – thus inflating the number of actual human individuals using the platform.

Hindenburg says Roblox essentially had two sets of ledgers – one counting unique users and another 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 ignoring widespread sexual grooming and adult content. As an example, the Hindenburg reports claim it encountered a group called “Adult Studios” which 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 prosecuting securities class actions and derivative litigation in state and federal courts and appellate courts across the country. The firm has lawyers in various practice areas and offices in New York, Chicago, Nashville and San Diego. This firm’s reputation and experience in shareholder and other class litigation has been repeatedly praised by the courts, which have appointed it to key positions in complex securities, multidistrict and consolidated litigation.

If you would like to discuss this investigation or have any questions about your rights and interests, please contact Wolf Haldenstein immediately at (800) 575-0735 or via email at [email protected].

Contact:

Wolf Haldenstein Adler Freeman & Herz LLP

Gregory Stone, Director of Case and Financial Analysis

Email: [email protected] or [email protected]

Tel: (800) 575-0735 or (212) 545-4774

This press release may be considered attorney advertising in some jurisdictions under applicable law and ethical rules.

SOURCE: Wolf Haldenstein Adler Freeman and Herz LLP

View the original press release at accesswire.com