THE LAWSUIT: A class action securities lawsuit was filed against Roblox Corporation (RBLX) that seeks to recover losses of Roblox shareholders who were adversely affected by alleged securities fraud between November 15, 2023 and May 8, 2024
CASE DETAILS: On February 7, 2024, Roblox – the publisher of the Minecraft video game – issued its FY 2024 fiscal guidance. It was the first time Roblox issued a fiscal guidance to investors.
Then, on May 9, 2023, Roblox hosted its quarterly earnings call and slashed its guidance for FY 2024. Management blamed changes in player engagement for the guidance reduction.
Analysts expressed dismay at the rapidly reduced guidance, with one analyst noting Roblox made the cut “at one of its first real opportunities to do so.” Other analysts reported the reduced guidance “may raise concerns regarding management’s visibility into core bookings growth” and the Company “will be burdened by a management credibility issue over the near term.”
Following the earnings call, RBLX shares fell $8.61, or 22% overnight.
WHAT’S NEXT? If you suffered a loss in Roblox stock during the relevant time frame – even if you still hold your shares – go to https://zlk.com/pslra-1/roblox-lawsuit-submission-form?wire=18 to learn about your rights to seek a recovery. There is no cost or obligation to participate.
WHY LEVI & KORSINSKY: Over the past 20 years, Levi & Korsinsky LLP has established itself as a nationally-recognized securities litigation firm that has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. The firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services’ Top 50 Report as one of the top securities litigation firms in the United States. Attorney Advertising. Prior results do not guarantee similar outcomes.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 17th Floor
New York, NY 10004
jlevi@levikorsinsky.com
Tel: (212) 363-7500
Fax: (212) 363-7171
https://zlk.com/
