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 about the investigation's scope and subject remain undisclosed. The SEC cited potential harm to the ongoing proceedings as the reason for withholding further information. Roblox has not yet commented on the matter.
Roblox has faced scrutiny in the past. A report last October alleged the company inflated its daily active user (DAU) numbers and created a harmful environment for children. Roblox vehemently denied these accusations, emphasizing its commitment to safety and civility. The company acknowledged that unauthorized access and fraudulent activity could lead to DAU overestimation. Subsequently, in 2024, Roblox announced significant upgrades to its safety features and parental controls.
Previous legal actions against Roblox include a 2023 lawsuit from families claiming the company misled users about its ability to maintain a safe and appropriate platform for children. A 2021 report by People Makes Games also investigated potential exploitation of creators within Roblox's user-generated content system.
Recently, Roblox shares experienced an 11% drop following the company's report of 85.3 million daily active users, falling short of analyst expectations of 88.2 million. Roblox CEO David Baszucki stated the company will continue investing in its virtual economy, app performance, and AI-driven safety and discovery features to benefit creators and enhance user experience.
