NEW YORK, June 18, 2024 /PRNewswire/ — Attorney Advertising — Bronstein, Gewirtz & Grossman, LLC, a nationally recognized law firm, notifies investors that a class action lawsuit has been filed against Roblox Corporation (“Roblox” or “the Company”) (NYSE: RBLX) and certain of its officers.
Class Definition
This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired Roblox securities between November 15, 2023, and May 8, 2024, inclusive (the “Class Period”). Such investors are encouraged to join this case by visiting the firm’s site: bgandg.com/RBLX.
Case Details
According to the Complaint, Roblox is an online entertainment publisher and distributor which also sells advertising space on those platforms.
In November 2023, according to the Complaint, Roblox provided investors with material information concerning the Company’s expected revenue for the first quarter of 2024 (Q1-24) and fiscal year 2024 (FY-24). 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 FY-24—reflecting 25%-27% annual growth—and $3.3 billion to $3.4 billion annual revenue. Additionally, Roblox gave several reasons for its bullish revenue guidance including:
(1) its innovative economic incentives for online content creators;
(2) new digital purchasable items;
(3) expansion to new platforms such as PlayStation; and
(4) expanded advertising revenue.
On its February 7, 2024, earnings call, according to the Complaint, the Company reiterated its Q1-24 and FY-24 earnings projections and its strength in its new technology and digital economy.
The Complaint alleges that investors discovered that these previous statements were false when Roblox hosted its Q1-24 earnings call on May 8, 2024, and released its associated financial reports. The Company announced it was reducing its previously announced bookings guidance to $4.0 billion for FY-24. It also announced 19% bookings growth in Q1-24. The company blamed its digital economy, new purchasable items, and platform expansion for the decline.
Investors and analysts reacted immediately to the Company’s revelation, according to the Complaint. The price of Roblox’s common stock declined dramatically. Roblox shares closed at $39.03/share on May 8, 2024; however, shares lost over 22% the next day, closing at $30.42 on May 9, 2024.
What’s Next?
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm’s site: bgandg.com/RBLX or you may contact Peretz Bronstein, Esq. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 332-239-2660. If you suffered a loss in Roblox you have until August 5, 2024, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff.
There is No Cost to You
We represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys’ fees, usually a percentage of the total recovery, only if we are successful.
Why Bronstein, Gewirtz & Grossman
Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide.
Attorney advertising. Prior results do not guarantee similar outcomes.
Contact
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Nathan Miller
332-239-2660 | info@bgandg.
SOURCE Bronstein, Gewirtz & Grossman, LLC
