Roblox Allegedly Misrepresented Growth, User Protection Post-IPO

Roblox Corp. and its top executives allegedly misled investors about the company’s bookings growth and the adequacy of its user protection controls, according to a proposed class action lawsuit.

The gaming platform provider went public in March 2021, which is when the alleged misrepresentations began while the company reported strong growth, but failed to disclose then that a portion of that growth was due to weak content controls and a lack of spending restrictions, according to the suit filed Monday in US District Court for the Southern District of New York.

The inadequate controls allowed young Roblox users, about half ...