| COMPANY |
Roblox Corporation |
| COURT |
United States District Court for the Northern District of California |
| CASE NUMBER |
24-cv-03484 |
| JUDGE |
The Hon. Maxine M. Chesney |
| CLASS PERIOD |
November 15, 2023 through May 8, 2024 |
| SECURITY TYPE |
Securities |
LEAD PLAINTIFF DEADLINE IS AUGUST 12, 2024.
If you have suffered losses and would like to discuss your rights, please fill out this form or you may contact Jonathan Naji, Esq. at (484) 270-1453 or via e-mail at info@ktmc.com.
Case Background:
A class action lawsuit has been filed on behalf of those who purchased or acquired Roblox Corporation (“Roblox”) (NYSE: RBLX) securities between November 15, 2023 and May 8, 2024, both dates inclusive (the “Class Period”).
In November 2023, Roblox provided investors with material information concerning the company's expected revenue for the first quarter of 2024 and fiscal year 2024. This was the first time Roblox offered earnings and revenue guidance to its investors since the company went public in 2021. Roblox's statements included, among other things, that Roblox expected $4.14 billion to $4.28 billion of "bookings" in fiscal year 2024—reflecting 25%-27% annual growth—and $3.3 billion to $3.4 billion annual revenue.
Then on February 7, 2024, during an earnings call, Roblox reiterated its first quarter 2024 and fiscal year 2024 earnings projections as well as its strength in its new technology and digital economy.
On May 9, 2024, Roblox reported its financial results for the first quarter of 2024 and provided updated guidance. Among other things, Roblox advised that the company expects bookings revenue of $870 million to $900 million for the second quarter of 2024, compared to analyst expectations of $929 million, and bookings revenue of $4 billion to $4.1 billion for the full year, significantly lower than the Roblox's earlier forecast of $4.14 billion to $4.28 billion.
On this news, Roblox's stock price fell $8.61 per share, or 22.06%, to close at $30.42 per share on May 9, 2024.
The complaint alleges that, throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that Defendants created the false impression that they possessed reliable information pertaining to Roblox’s projected revenue outlook and anticipated bookings growth. According to the complaint, in fact, Roblox faced difficulty converting daily active users into bookings and eventually blamed the very technology and platform growth Roblox lauded as revolutionary and revenue-generating for this bookings problem.
What is a Lead Plaintiff?
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or 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.