SEC Launches Active Investigation Into Roblox

Roblox is currently under investigation by the U.S. Securities and Exchange Commission (SEC), which has confirmed the existence of an active probe but has not disclosed specific details to avoid interfering with ongoing enforcement proceedings. This investigation follows allegations that Roblox misled investors about player metrics, as well as concerns raised by the Federal Trade Commission regarding undisclosed in-game advertisements targeted at children. The SEC has acknowledged that there are responsive emails related to Roblox within its Division of Enforcement. Following disappointing quarterly results, Roblox's stock has dropped by over 20%, exacerbating investor concerns. The company has previously rejected claims of inflated user metrics and is yet to comment on the current investigation. As the investigation unfolds, analysts remain divided on the stock's future, with some suggesting potential recovery while others anticipate further declines.