Bronstein, Gewirtz and Grossman, LLC reminds Roblox Corporation investors to join the class action lawsuit!

NEW YORK CITY, NY / ACCESSWIRE / July 21, 2024 / 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 action seeks to recover damages from Defendants for alleged violations of the federal securities laws on behalf of all persons and entities who purchased or otherwise acquired Roblox securities between November 15, 2023 and May 8, 2024, inclusive (the “Litigation Period”). Such investors are encouraged to join this case by visiting the Firm’s website: bgandg.com/RBLX.

Case details

According to the complaint, Roblox is a publisher and distributor of online entertainment that also sells advertising space on those platforms.

In November 2023, according to the complaint, Roblox provided investors with material information about 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 provided earnings and revenue guidance to investors since the company went public in 2021. Among other things, Roblox’s statements included that Roblox expected FY-24 “bookings” of $4.14 billion to $4.28 billion – representing annual growth of 25 to 27 percent – and annual revenue of $3.3 billion to $3.4 billion. In addition, Roblox provided several reasons for its optimistic revenue guidance, including:

(1) its innovative economic incentives for online content creators;
(2) new digital purchase items;
(3) Expansion to new platforms such as PlayStation; and
(4) higher advertising revenues.

According to the complaint, during its quarterly earnings conference call on February 7, 2024, the company reiterated its earnings guidance for the first quarter of 2024 and the full year of 2024, as well as its strength in new technologies and the digital economy.

The complaint alleges that investors discovered these prior statements were false when Roblox held its first quarter 2024 earnings call and released related financial statements on May 8, 2024. The company announced that it was lowering its previously announced fiscal 2024 bookings guidance to $4.0 billion. It also announced 19% bookings growth in the first quarter of 2024. The company blamed its digital economy, new purchasable items, and platform expansion for the decline.

Investors and analysts reacted immediately to the company’s disclosure, according to the complaint. The price of Roblox’s common stock fell dramatically. Roblox shares closed at $39.03/share on May 8, 2024; however, the next day, shares lost over 22%, closing at $30.42 on May 9, 2024.

What’s next?

A class action lawsuit has already been filed. If you would like to review a copy of the lawsuit, you can visit the firm’s website: bgandg.com/RBLX or you can 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 12, 2024 to request that the court appoint you as lead plaintiff. Your ability to share in any compensation is not dependent on your serving as lead plaintiff.

There are no costs for you

We represent investors in class action lawsuits on a contingency basis, meaning we ask the court to reimburse us for our expenses and attorney fees (usually a percentage of the total award) only if we win.

Why Bronstein, Gewirtz & Grossman

Bronstein, Gewirtz & Grossman, LLC is a nationally recognized law firm representing investors in securities fraud class action lawsuits and shareholder actions involving derivatives trading. Our firm has recovered hundreds of millions of dollars for investors nationwide.

Attorney advertising. Past results do not guarantee similar results.

CONTACT:
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Nathan Miller,
332-239-2660 | (email protected)

SOURCE: Bronstein, Gewirtz and Grossman, LLC