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RBLX.US
id: 1253
Roblox Corporation (RBLX) Platform Expansion Issues Case
N.D. California
Court3:24-cv-03484
Case number11/15/2023
Class period Start05/08/2024
Class period End08/12/2024
Lead Plaintiff motion deadline- $RBLX stockholder filed a claim vs. Roblox Corporation for hiding issues with new items and platform expansion.
- On May 9, 2024, on the news of Roblox slashing its guidance for FY 2024, $RBLX fell 22%, losing $5B+ in shareholder value.
- Roblox investors can join this case to be notified about potential recovery.
Case details:
In November 2023, Roblox offered earnings and revenue guidance to its investors for the first time since going public in 2021.
Roblox provided several reasons for its optimistic revenue forecast, including innovative economic incentives for online content creators, new purchasable digital items, expansion to new platforms such as PlayStation, and increased advertising revenue.
On February 7, 2024, during an earnings call, Roblox reiterated its earnings projections for Q1 2024 and FY 2024, emphasizing its strength in new technologies and its digital economy.
However, on May 9, 2024, Roblox hosted its quarterly earnings call and drastically reduced its guidance for FY 2024.
Following this news, $RBLX fell 22%, losing over $5B in shareholder value.
Based on these events, investors have filed a claim against Roblox, accusing them of the following:
- Roblox was unable to meet its revenue projections.
- They also didn't disclose issues with the new items and platform expansion.
Considering all the representations, investors have reasons to suspect Roblox hid issues with new items and expansion.
Case Status
Voluntary Dismissed
Alleged Offence
Misleading Statements,
Failure to Disclose,
Omissions
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
05/09/2024
Filing date
06/10/2024
Lead Plaintiff Deadline
08/12/2024
Judge
Hon. Maxine M. Chesney