Roblox Under SEC Scrutiny
The U.S. Securities and Exchange Commission (SEC) is currently investigating Roblox, a popular online game platform, according to a recent Bloomberg report. While the SEC confirmed the existence of an "active and ongoing investigation" involving Roblox through a Freedom of Information Act request, details regarding the investigation's scope and subject remain undisclosed. The SEC cited potential harm to ongoing enforcement proceedings as the reason for withholding information. Roblox itself has not yet commented on the matter.
This investigation comes amidst prior scrutiny of Roblox. Last October, a report alleged the company inflated its daily active user (DAU) numbers and created a harmful environment for children. Roblox vehemently denied these claims, emphasizing its commitment to safety and user well-being while acknowledging potential inaccuracies due to undetected fraud and unauthorized access. In 2024, Roblox announced significant upgrades to its safety features and parental controls.
Further, Roblox faced lawsuits in 2023 from families alleging misleading claims about the platform's safety for children. A 2021 report also examined user-generated content on Roblox and potential exploitation of creators.
Recently, Roblox shares experienced an 11% drop following the company's report of 85.3 million daily active users, falling short of analyst expectations. Roblox CEO David Baszucki reiterated the company's commitment to investing in its virtual economy, app performance, and AI-driven safety and discovery features.
