RBLX - ROBLOX ALERT: Bragar Eagel & Squire P.C. is Investigating Roblox Corporation on Behalf of Long-Term Stockholders and Encourages Investors to Contact the Firm | Benzinga
NEW YORK, March 19, 2024 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against Roblox Corporation (NYSE:RBLX) on behalf of long-term stockholders following a class action complaint that was filed against Roblox on November 27, 2023 with a Class Period from March 10, 2021 to February 15, 2022. Our investigation concerns whether the board of directors of Roblox have breached their fiduciary duties to the company.
Roblox operates a platform that provides developers with tools to create online games and hosts the games on its servers. 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.
The Complaint 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 ...