Grant & Eisenhofer Files Class Action Lawsuit Against Roblox Corporation, Extending Class Period of Previously Filed Action

NEW YORK--(BUSINESS WIRE)--Today, Grant & Eisenhofer P.A. filed a class action lawsuit on behalf of the Police and Fire Retirement System of the City of Detroit against Roblox Corporation (“Roblox” or the “Company”), Roblox’s CEO David Baszucki, Roblox’s CFO Naveen Chopra, and Roblox’s former CFO Michael Guthrie (collectively, the “Defendants”). The action alleges that Defendants defrauded investors by making materially false and/or misleading statements and failing to disclose material adverse facts regarding the lack of adequate safety infrastructure on Roblox’s platform and, later, that the implementation of enhanced age verification technology in response to governmental pressure would materially impair the Company’s financial results and growth.

The action alleges that Defendants defrauded investors by making materially false and/or misleading statements and failing to disclose material adverse facts regarding lack of adequate safety infrastructure on Roblox’s platform.

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The action, brought in the United States District Court for the Northern District of California, is captioned Police and Fire Retirement System of the City of Detroit v. Roblox Corp. et al., No. 3:26-cv-07160 (N.D. Cal.). It is related to the action captioned Mukherjee v. Roblox Corporation et al., No. 4:26-cv-05489 (N.D. Cal.). The action expands the class period asserted in the Mukherjee action so that it now includes all persons or entities who purchased or acquired Roblox common stock from October 31, 2024, through April 30, 2026, inclusive (the “Class Period”).

Roblox is an online gaming and gaming development platform which allows users to play, create, and monetize millions of user-generated 3D games or “experiences,” boasting well over 100 million daily active users. The Roblox platform also contains a social component, which lets its users interact through a chat function. Roblox is popular with children, with a majority of its daily active users under the age of sixteen and 40% under the age of twelve.

The complaint alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. Specifically, the lawsuit alleges that throughout the Class Period, Defendants issued a series of materially false and misleading statements which led investors to believe that its platform was safe for children. Later, after a flurry of litigation by ten state attorneys general alleging that Roblox’s platform lacked sufficient safeguards for children, Defendants announced the Company would be rolling out new age verification technology globally beginning in January 2026. Defendants downplayed the effect of these safety enhancements and claimed that the new technology would not have any meaningful effect on the growth trajectory of the Company.

Investors slowly learned the truth through a series of disclosures beginning on October 30, 2025. That day, the Company revealed that it would be instituting enhanced age verification technology globally beginning in January 2026. On this news, the price of the Company’s common stock declined 16% from $133.74 per share to $113.00 per share, wiping out $13 billion in market value.

Then on April 30, 2026—just three months after Roblox assured investors that the global rollout of the Company’s new age verification software would not impact the Company’s growth—Roblox disclosed it would be dramatically slashing its bookings guidance by $1 billion due to the new age verification software, which would significantly reduce its daily active users for the foreseeable future. On this news the price of the Company’s common stock declined from a market price of $55.26 per share at the close of trading on April 30, 2026, to $45.13 per share on May 1, 2026, a decline of 18.33%.

Investors who purchased or acquired Roblox common stock during the Class Period are members of this proposed Class and may be able to seek appointment as lead plaintiff, which is a court-appointed representative of the Class, by complying with the relevant provisions of the Private Securities Litigation Reform Act of 1995 (the “PSLRA”). See 15 U.S.C. Section 78u-4(a)(2)(A)(i)-(iv).

If you wish to serve as lead plaintiff, you must move the Court by no later than August 7, 2026. You do not need to seek to become a lead plaintiff in order to share in any possible recovery. You may also retain counsel of your choice to represent you in this action.

If you wish to discuss this action or have any questions concerning this notice or your rights, please contact Karin E. Fisch at Grant & Eisenhofer at 646-722-8500, or via email at kfisch@gelaw.com. You can also find more information at gelaw.com.