PHILADELPHIA, June 14, 2024 (GLOBE NEWSWIRE) -- Berger Montague PC advises investors that a securities fraud class action lawsuit has been filed against Roblox Corporation (“Roblox” or the “Company”) (NYSE: RBLX) on behalf of purchasers of Roblox securities between November 15, 2023 and May 8, 2024, inclusive (the “Class Period”).
Investor Deadline: Investors who purchased or acquired Roblox securities during the Class Period may, no later than August 12, 2024, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this litigation, please contact Berger Montague: James Maro at jmaro@bm.net or (267) 637-3176, or Andrew Abramowitz at aabramowitz@bm.net or (215) 875-3015, or CLICK HERE.
Headquartered in San Mateo, California, Roblox is an online entertainment publisher and distributor, which also sells advertising space on its platforms. Roblox’s various platforms, which include the Minecraft video game, attract 77.7 million daily users.
According to the complaint, throughout the Class Period, Defendants created the false impression that they possessed reliable information pertaining to Roblox’s projected revenue outlook and anticipated bookings growth, due largely to expansion in Roblox’s available platforms, changes in Roblox’s digital technology (such as avatars), Roblox’s shared economy with content creators, and advertising revenue. The lawsuit alleges that, contrary to Defendants’ public statements, Roblox faced difficulty converting daily active users into bookings and eventually blamed the very technology and platform growth that they had touted.
On May 8, 2024, Roblox revised downward its fiscal year 2024 bookings guidance to between $4.0 billion and $4.14 billion and likewise revised downward its total revenue to between $3.30 billion and $3.40 billion.
On this news, the price of Roblox stock fell $8.67, more than 22%, from a closing price of $39.09 per share on May 8, 2024 to a closing price of $30.42 per share on May 9, 2024.
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the Court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
Berger Montague, with offices in Philadelphia, Minneapolis, Delaware, Washington, D.C., San Diego, San Francisco and Chicago, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for over five decades and serves as lead counsel in courts throughout the United States.
Contacts:
James Maro, Senior Counsel
Berger Montague
(267) 637-3176
jmaro@bm.net
Andrew Abramowitz, Senior Counsel
Berger Montague
(215) 875-3015
aabramowitz@bm.net
