Roblox faces class action as shares plunged 18% on growth warning

Bronstein, Gewirtz & Grossman LLC filed a securities class action against Roblox Corp. (NYSE: RBLX) on June 23, alleging the company misled investors about its growth trajectory and the impact of its age verification rollout.

"The company's statements about its organic growth potential were materially false and misleading," the complaint alleges. The lawsuit seeks damages for investors who purchased Roblox securities between Oct. 30, 2025 and April 30, 2026.

Roblox's stock fell 18.33% on May 1, dropping from $55.26 to $45.13 a share, after the company reported first-quarter results that revealed a sharp slowdown. Management cut bookings growth guidance to 8% to 12% and disclosed that age verification adoption had reached only 51% of global daily active users, up from 45% the prior quarter. The company had previously described itself as "enormously bullish" on its tech rollouts and said it could "rely on our tremendous organic growth."

The class action is one of several filed against the San Mateo, California-based gaming platform. Faruqi & Faruqi LLP and Robbins Geller Rudman & Dowd LLP have also announced investigations, with all three firms directing investors to the same Aug. 7 lead plaintiff deadline. The lawsuits allege that Roblox failed to disclose that the age verification system would reduce on-platform communication, trigger app store rating downgrades, and slow organic user acquisition.

Roblox operates a global online gaming platform popular with children and teenagers. The company has faced growing scrutiny over child safety, with Arkansas Attorney General Tim Griffin filing a separate lawsuit on June 11 alleging the platform is "tantamount to a breeding ground for sexual predators."

The Aug. 7 deadline applies to investors seeking appointment as lead plaintiff, the investor with the largest financial interest who directs the litigation on behalf of the class. Class members who do not seek lead plaintiff status can still share in any potential recovery.

The lawsuits signal that investors expect material damages from the alleged disclosure failures. Roblox's next quarterly report, expected in late July, will provide the first update on whether bookings growth has stabilized within the reduced 8% to 12% range.

This article is for informational purposes only and does not constitute investment advice.