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 Roblox 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.

Investors who purchased or acquired Roblox securities between November 15, 2023 and May 8, 2024, may no later than August 12, 2024, seek to be appointed as a lead plaintiff representative of the class.