SAN
DIEGO, Nov. 29, 2023 /PRNewswire/ -- DiCello
Levitt LLP announces that purchasers or acquirers of Roblox
Corporation (NYSE: RBLX) Class A common stock between March 10, 2021 and February 15, 2022, inclusive (the "Class Period")
have until January 26, 2024 to seek
appointment as lead plaintiff of the Roblox class action
lawsuit. The lawsuit claims Roblox and certain of its senior
executive officers with violations of the Securities Exchange Act
of 1934.
If you purchased shares of Roblox Class A common stock between
March 10, 2021 and February 15, 2022, suffered substantial losses
and you wish to serve as lead plaintiff in this lawsuit, you may
submit your information here:
https://dicellolevitt.com/securities/roblox/.
You can also contact DiCello Levitt partner Brian O'Mara by calling (888) 287-9005 or at
investors@dicellolevitt.com.
The class has not been certified. Until a class is
certified, you are not represented by counsel unless you retain
one. You may select counsel of your choice. You may
also remain an absent class member and do nothing at this point.
An investor's ability to share in any potential future
recovery is not dependent upon serving as lead plaintiff.
Allegations
Roblox (or the "Company") operates a video game platform that
provides developers with tools to create games that are hosted on
the Company's servers. Roblox generates revenue by selling its
proprietary currency (called "Robux") to its users so they can
purchase digital items (e.g., weapons 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 Roblox lawsuit alleges that, throughout the
Class Period, Roblox reported strong bookings and revenue growth
and 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, including
new controls that allowed parents to place monthly spending caps 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, causing Roblox stock to plummet by
$19.43 per share, or 26.5%, to close
at $53.87 per share on February 16, 2022.
About DiCello Levitt
At DiCello Levitt, we are dedicated to achieving justice for our
clients through class action, business-to-business, public client,
whistleblower, personal injury, civil and human rights, and mass
tort litigation. Our lawyers are highly respected for their
ability to litigate and win cases—whether by trial, settlement, or
otherwise—for people who have suffered harm, global corporations
that have sustained significant economic losses, and public clients
seeking to protect their citizens' rights and interests.
Every day, we put our reputations—and our capital—on the line for
our clients.
DiCello Levitt has achieved top recognition as Plaintiffs Firm
of the Year and Trial Innovation Firm of the Year by the
National Law Journal, in addition to its top-tier
Chambers and Benchmark ratings. The New York
Law Journal also recently recognized DiCello Levitt as a
Distinguished Leader in trial innovation. For more
information about the Firm, including recent trial victories and
case resolutions, please visit www.dicellolevitt.com.
Attorney Advertising. Prior results do not guarantee a
similar outcome.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/dicello-levitt-llp-announces-investor-class-action-lawsuit-filed-against-roblox-corporation-nyse-rblx-and-lead-plaintiff-deadline-302000894.html
SOURCE DiCello Levitt LLP