Core Viewpoint - Pomerantz LLP is investigating claims of potential securities fraud and unlawful business practices involving Roblox Corporation and its officers or directors [1] Group 1: Legal Issues - Louisiana Attorney General filed a lawsuit against Roblox, alleging inadequate controls on its online gaming platform that allow child predators to exploit children [3] - The lawsuit claims that the platform enables predators to pose as children and bypass age requirements, facilitating the sharing of sexually explicit material [3] Group 2: Market Reaction - Following the news of the lawsuit, Roblox's stock price dropped by $7.94 per share, a decrease of 6.34%, closing at $117.34 per share on August 15, 2025 [4]

What do American parents fear most. The answer is: Roblox "My child is obsessed with Roblox" Roblox, the first stock in the Metaverse, has been listed on the New York Stock Exchange in 2021 as the "first stock in the Metaverse." Its stock price has since soared, and its market value has surpassed major game companies such as EA and Activision Blizzard , making it one of the most valuable game companies in the United States. Although Roblox's market value once evaporated by 80% with the bursting of the Metav ...

Core Viewpoint - Roblox is facing a lawsuit from Louisiana Attorney General Liz Murrill, alleging that the company fails to protect children on its gaming platform, prioritizing user growth and profits over child safety [2]. Legal Allegations - The lawsuit claims that Roblox does not implement basic safety controls to protect children from predators, leading to harmful content on the platform [2]. - Louisiana seeks to prohibit Roblox from violating the Louisiana Unfair Trade Practices Act and demands restitution, attorney's fees, civil penalties, and additional damages [2]. Company Response - Roblox stated it does not comment on pending litigation but aims to address what it calls "erroneous claims and misconceptions" [3]. - The company claims to continuously introduce new safety tools, maintain stricter safety policies than other platforms, and actively work to detect and prevent inappropriate content and behavior [3][4]. Safety Measures - Roblox provides parental controls to help ensure a safe online experience for children and collaborates with law enforcement and child safety organizations [4]. - The company emphasizes its commitment to creating a safe online environment, which it considers critical to its long-term vision and success [5]. Recent Complaints - In a short period, seven complaints have been filed against Roblox in various states, including California, Pennsylvania, and Texas, regarding issues related to child predators on the platform [5]. - Roblox reported having 111.8 million daily active users in its second-quarter earnings release [6].

Louisiana's attorney general filed a lawsuit against Roblox Corporation RBLX, accusing the gaming company of enabling child sexual abuse and exploitation on its platform.The state claims Roblox has failed to protect young users in Louisiana and the U.S.Roblox, one of the most widely used interactive gaming platforms for children, promotes itself as the "#1 gaming site for kids and teens" and an educational experience.The lawsuit, filed by the Louisiana Attorney General Liz Murrill, alleges that these assura ...

Roblox is back in court, defending itself against more charges of child endangerment.Roblox Corporation (RBLX -7.26%), the online gaming platform that's especially popular with teens and younger kids, saw its stock sell off hard this morning -- down more than 10%. The shares have clawed back some of their losses as the day progresses, but as of 11:10 a.m., they remain down 7.1%.You can blame Louisiana for that. Louisiana takes a shot at RobloxAnd why? Louisiana Attorney General (AG) Liz Murrill announced t ...

Core Viewpoint - The Louisiana Attorney General has filed a lawsuit against Roblox, accusing the platform of failing to implement necessary safety controls, thereby making it a dangerous environment for children and facilitating the distribution of child sexual abuse material [1][3]. Group 1: Lawsuit Details - The lawsuit alleges that Roblox has not rolled out basic safety controls to protect children from predators and has failed to notify parents of the associated risks [1][3]. - The lawsuit highlights that 20% of Roblox's 82 million daily active users are under the age of 8, and another 20% are between the ages of 9 and 12 [2]. - Specific sexually explicit experiences on the platform are cited in the lawsuit, including titles like "Escape to Epstein Island" and "Public Bathroom Simulator Vibe" [4]. Group 2: Company Response - A spokesperson for Roblox stated that the company dedicates substantial resources to detect and prevent inappropriate content and behavior, including 24/7 human moderation [4][7]. - Roblox has implemented safety measures, such as barring users under 13 from sending direct messages, in response to previous reports of risks to young users [7]. - Despite these measures, the lawsuit claims that Roblox's recent safety protocols are inadequate and were implemented too late [8]. Group 3: Legal Actions Sought - The lawsuit seeks permanent injunctive relief to prevent Roblox from claiming it has adequate safety features and from engaging in activities that violate the Louisiana Unfair Trade Practices Act [9].

Roblox Defends Banning ‘Vigilante’ Users As Criticism Over Child Safety Grows https://t.co/fke2dO9kcp ...

Roblox's efforts to win over new players has earned the popular video-game platform its first investment grade rating, after S&P Global Ratings upgraded the firm https://t.co/ESqj9Ao515 ...

Key Takeaways Roblox trades at a forward P/S of 12.45X versus the gaming industry's 3.62X average.Q2 bookings jumped 51% y/y to $1.4B, with DAUs up 41% to 111.8M and strong APAC gains.Record 23.4M monthly payers and $316.4M in DevEx payouts highlight creator momentum.Roblox Corporation (RBLX) is currently trading at a forward 12-month price-to-sales ratio of 12.45X compared with the Zacks Gaming industry’s average of 3.67X and the broader Consumer Discretionary sector’s 2.22X.P/S (F12M) Image Source: Zacks ...

Core Insights - Roblox Corporation (RBLX) is experiencing significant growth in its user base, with daily active users (DAU) increasing by 41% year over year to 111.8 million in Q2 2025, and total engagement hours rising by 58% to 27.4 billion [1][6] - The company is successfully monetizing its platform, with Q2 bookings climbing 51% year over year to $1.4 billion, driven by increased engagement and a record number of monthly unique payers [2][6] - Despite strong revenue growth, profitability is under pressure due to heavy reinvestment in its creator ecosystem, with Developer Exchange payouts reaching a record $316.4 million, up 52% year over year [3][6] User Growth and Engagement - The growth in DAUs is broad-based across geographies and age groups, particularly strong in the APAC region (up 76% DAUs) and among users aged over 13 years (up 54%), who now represent over 64% of the user base [1][6] - The company aims to maintain engagement quality while converting its expanding DAU base into stronger monetization [4] Monetization Strategies - Monthly unique payers reached a record 23.4 million, up 42% year over year, with 4.6 million new payers added [2] - Average bookings per payer increased by 6%, and premium subscriptions are contributing to recurring revenues [2] - Immersive advertising is gaining traction, with more brands utilizing Roblox's 3D environments for marketing [2] Financial Performance and Valuation - RBLX shares have increased by 103.5% over the past six months, significantly outperforming the industry average of 17% [5] - The company's forward 12-month price-to-sales ratio is 12.57, which is above the industry average, indicating a premium valuation compared to peers like Take-Two Interactive and Electronic Arts [7] Profitability Outlook - The Zacks Consensus Estimate for 2025 loss per share has widened to $1.71, reflecting ongoing challenges in achieving profitability [9][10] - The company reported an adjusted loss per share of $1.44 in 2024, while competitors are expected to see earnings growth in fiscal 2026 [9]