Roblox Corp. shares plummeted nearly 11% on Friday as two new lawsuits accused the platform of failing to safeguard children from online predators. The cases, filed by Louisiana Attorney General Liz Murrill and a federal court in California, join five other recent suits in multiple states involving victims as young as eight.
Plaintiffs claim Roblox’s safety measures are insufficient, despite the company’s efforts to improve moderation and rollout stronger age verification features. However, Roblox maintains it invests heavily in safety and limits personal information sharing. The platform acknowledges that no system is perfect.
The criticism comes amid concerns over delayed protections launched this year. In 2018, at least two dozen suspects were arrested for crimes linked to Roblox. With an average of 111.8 million daily users under the age of 13 generating billions of messages and user-made games daily, critics are questioning why some safety measures took time to materialize.
Shares closed down 6.8% at $116.77 following the news.
Source: https://www.businessreport.com/article/roblox-shares-drop-after-louisiana-ag-files-lawsuit-against-gaming-platform