Pay attention, parents — a new Bloomberg release confirms the popular online video game platform Roblox is part of an active U.S. Securities and Exchange Commission (SEC) investigation. In response to a Freedom of Information Act request, the commission explained they couldn’t share correspondence pertaining to Roblox Corp., saying it would cause “harm to the ongoing enforcement proceeding.”
The popular online platform is among the most popular video game titles of the 2020s, competing with the likes of massive global phenomena like Minecraft, Among Us, and Fortnite. However, its charming geometric design, ample minigames, and social elements particularly appeal to children. Recently released metrics show players under the age of 13 comprise 32.5 million of the service’s 84.6 million daily players.
Such eye-popping user engagement is the platform’s lifeblood, as these figures greatly influence Roblox’s share price. But these sky-high numbers perturbed shareholders and government officials, leading to one of myriad accusations aimed at Roblox Corp. in recent months. One scathing October report from now-defunct Hindenburg Research claimed the corporation fails to adequately protect young gamers from online dangers, including predatory users. The release also claims Roblox Corp. “is lying to investors, regulators, and advertisers about the number of ‘people’ on its platform, inflating the key metric by 25-42%+ … engagement hours, another key metric, is inflated by an estimated 100%+.” That same month, Roblox Corp. investors took their concerns regarding the platform’s inflated user engagement to leading class action law firm Edelson Lechtzin LLP, kickstarting an investigation into what the release called “potential securities fraud.”
Though they confirmed a probe was underway, the SEC failed to elaborate further. Regarding the Roblox Corp. investigation, the commission explained: “We have confirmed with Division of Enforcement staff that there are responsive emails between Enforcement staff referencing Roblox and that these emails are a part of an active and ongoing investigation.”
Parents and players can find more information regarding Roblox Corp.’s SEC filings via the website’s Financials page.
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A lifelong gamer raised on classic titles like Crash Bandicoot, Spyro, and Croc, Stephanie brings her expertise of gaming and pop culture to deliver unique, refreshing views on the world of video games, complete with references to absurd and obscure media.
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