Bronstein, Gewirtz and Grossman, LLC reminds investors of the upcoming lead plaintiff deadline in the lawsuit against Roblox Corporation!

NEW YORK, NEW YORK / ACCESSWIRE / July 5, 2024 / Bronstein, Gewirtz & Grossman, LLC, an internationally renowned law firm, notifies investors of the filing of a class action lawsuit against Roblox Corporation (“Roblox” or the “Company”) (NYSE:RBLX) and certain of its principals.

Class Definition

This lawsuit seeks to recover damages from 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 Company’s website at bgandg.com/RBLX.

Details of the case

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 regarding 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 had offered its investors guidance regarding its earnings and revenue since the Company went public in 2021. Roblox’s statements included, among other things, that Roblox expected $4.14 billion to $4.28 billion in “bookings” in FY-24 — reflecting 25% to 27% annual growth — and $3.3 billion to $3.4 billion in annual revenue. Additionally, Roblox provided several reasons for its bullish revenue outlook, including:

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

According to the complaint, during its earnings conference call on February 7, 2024, the Company reiterated its earnings guidance for Q1 2024 and fiscal year 2024 and reaffirmed its strength in new technologies and the digital economy.

The complaint alleges that investors discovered that these prior statements were false when Roblox held its Q1 2024 earnings conference call on May 8, 2024, and released related financial reports. The company announced that it was lowering its previously announced bookings guidance to $4.0 billion for fiscal year 2024. It also announced a 19% increase in bookings in Q1 2024. The company blamed the decline on its digital economy, new purchasable items, and platform expansion.

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

What’s next?

The class action lawsuit has already been filed. If you would like to review a copy of the complaint, you can visit the firm’s website at bgandg.com/RBLX or 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 at Roblox, you have until August 12, 2024 to ask the Court to appoint you as lead plaintiff. Your ability to share in any award does not require you to serve as lead plaintiff.

There is no cost to you.

We represent investors in class action lawsuits on a contingency basis. This means that we will ask the court to recover our costs and attorney fees, usually a percentage of the total award, only if we are successful.

Why Bronstein, Gewirtz and Grossman

Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm representing investors in securities fraud class actions and shareholder derivative lawsuits. Our firm has recovered hundreds of millions of dollars for investors across the country.

Lawyer Advertising. Previous results do not guarantee similar results.

CONTACT:

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

SOURCE: Bronstein, Gewirtz & Grossman, LLC