Case Summary

Roblox

NYSE: RBLX

Case Details

  • Li v. Roblox Corp. et al.
  • Class Period:November 15, 2023 - May 8, 2024
  • Date Filed:June 10, 2024
  • Jurisdiction:U.S. District Court, Northern District of California
  • Docket Number: 3:24-cv-03484
  • Lead Plaintiff Deadline: August 9, 2024
Days Left to
Seek Plaintiff
45

Overview

A class action lawsuit has been filed against Roblox Corp. (“Roblox” or the “Company”) (NYSE: RBLX) and certain of the Company’s former and current senior executive officers alleging violations of the federal securities laws.  The Roblox class action lawsuit is brought on behalf of all persons and entities who purchased or otherwise acquired Roblox securities between November 15, 2023, and May 8, 2024, both dates inclusive (the “Class Period”).  Investors have until August 9, 2024, to seek appointment as lead plaintiff of the Roblox class action lawsuit.

Roblox is an online entertainment company which produces, publishes, and distributes online games and software.  It publishes the popular “Roblox” game, which attracts millions of users per day.  It also distributes the “Roblox Studio” software, which allows developers to produce programs and elements on Roblox’s platforms.  The Company sells advertising space on its online media.  One of Roblox’s revenue sources is called “bookings,” which refer to online sales activities generated by Roblox’s users/consumers.  “Bookings” come primarily from users’ purchases of Roblox’s online currency, which can be used to pay for subscription fees or in-game items.

The Roblox class action lawsuit alleges that Defendants created the false impression that they possessed reliable information pertaining to the Company’s projected revenue outlook and anticipated bookings growth, due largely to expansions in Roblox’s available platforms, changes in Roblox’s digital technology (such as avatars), Roblox’s shared economy with content creators, and advertising revenue.  In truth, Roblox knew each of those bookings and revenue sources was tenuous at best.

In fact, the Company faced difficulty converting Daily Active Users (“DAUs”) into bookings and eventually blamed the very technology and platform growth it lauded as revolutionary and revenue-generating for this bookings problem.  Defendants misled investors by providing the public with a materially flawed outlook for the relationship between DAU, bookings, and technology they lauded during their Investor Day and Earnings Call.

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If you purchased or otherwise acquired Roblox securities between November 15, 2023, and May 8, 2024, both dates inclusive, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at investors@dicellolevitt.com. 

The deadline to apply to the Court to serve as a lead plaintiff in the Roblox lawsuit is August 9, 2024.

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