Roblox is one of the most popular video games on the market today. Its primary audience is younger than your traditional mainstream gaming demographic as a "kids game," but there has been some cross-appeal with streamers like CaseOh playing the Roblox game Dress to Impress.
On Friday, Bloomberg confirmed that the US Securities and Exchange Commission is actively investigating Roblox Corp. However, the company couldn't confirm details, citing that any information could "harm the ongoing enforcement proceeding."
The SEC responded to Bloomberg, saying, "We have confirmed with Division of Enforcement staff that there are responsive emails between Enforcement staff referencing Roblox and that these emails are a part of an active and ongoing investigation."
It's suggested that the investigation stems from Roblox inflating its metrics last year, including the number of active users and the amount of time they spend on the platform, misleading investors. For those unaware, misleading shareholders is a crime commonly known as securities fraud, which would explain why the SEC is involved.
This isn't a government agency's first involvement in the game industry. Last year, the Federal Trade Commission refunded $72 million in unwanted Fortnite purchases.
Roblox Shares Have Fallen 20% During Q4 2024...
