Case Summary



Case Details

  • DeKalb County Pension Fund v. Roblox Corporation et al.
  • Class Period:March 10, 2021 - February 15, 2022
  • Date Filed:November 27, 2023
  • Jurisdiction:U.S. District Court, Southern District of New York
  • Docket Number: 1:23-cv-10347
  • Lead Plaintiff Deadline: January 26, 2024
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A class action lawsuit has been filed against Roblox Corporation, (“Roblox”, or the “Company”) (NYSE: RBLX) and certain of the Company’s top executive officers alleging that they violated the federal securities laws. The lawsuit seeks to represent all persons and entities who purchased or otherwise acquired Roblox Class A common stock between March 10, 2021, and February 15, 2022, inclusive (the “Class Period”).

Roblox, headquartered in San Mateo, California, operates a video game platform that provides developers with tools to create games that are hosted on the Company’s servers. There are millions of games available on the platform that users can access for free. Roblox generates revenue by selling its proprietary currency (called “Robux”) to its users so they can purchase digital items (e.g., weapons, armor, or vehicles) to enhance their gaming experiences. About half of the Company’s users are under the age of 13, thus exposing Roblox to various Federal Trade Commission (“FTC”) regulations and other online gaming laws that are geared toward protecting minors.

The lawsuit alleges that throughout the Class Period, Roblox reported strong bookings and revenue growth. The Company attributed this growth to various factors, including the positive effect from COVID stay-at-home orders, its technology investments, and “high-quality” gaming content. However, Defendants misled investors by failing to disclose that a material portion of Roblox’s growth was due to weak content controls and the lack of spending restrictions on its platform. These inadequate controls enabled younger Roblox users to play games with inappropriate content and make unauthorized Robux purchases which translated into unsustainable levels of bookings and revenue.

In late September 2021, Roblox began to roll out enhanced user controls on its platform. Among other things, these new controls allowed parents to put monthly spending limits on their children’s Robux purchases. Unbeknownst to investors, the implementation of these enhanced controls would inevitably cause Roblox’s bookings growth to decelerate in the fourth quarter of 2021 and throughout 2022. On February 15, 2022, the truth about the Company’s unsustainable growth was revealed to investors when Roblox reported surprisingly weak fourth quarter 2021 results. Most of Roblox’s key metrics missed analysts’ expectations, including quarterly bookings and revenue, leading to a significant decline in the Company’s stock price and significant losses for investors.

The lawsuit further alleges that statements made by Defendants throughout the Class Period were materially false and misleading when made because they misrepresented 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) based on the foregoing, the Company’s bookings and revenue growth was unsustainable throughout the Class Period.

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If you purchased or otherwise acquired Roblox Class A common stock between March 10, 2021, and February 15, 2022, inclusive, and suffered substantial losses, 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 

The deadline to apply to the Court to serve as a lead plaintiff in the Roblox lawsuit is January 26, 2024.

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