Freshfields Bruckhaus Deringer partners Boris Feldman and Doru Gavril and senior associate Elena Hadjimichael have entered appearances for Roblox, a video game platform developer, and its top executives in a pending securities class action. The case, filed Dec. 26 in California Northern District Court by Labaton Sucharow, accuses the defendants of selling over $120 million in artificially inflated stock after making knowingly false representations regarding the company's strong bookings in the third quarter of 2021. According to the suit, in late Sept. 2021, Roblox began to roll out enhanced user controls on its platform which allowed parents to put monthly spend limits on their children's accounts, thus resulting in the deceleration of Roblox’s bookings growth in the fourth quarter of 2021 and throughout 2022. The case, assigned to U.S. District Judge Richard Seeborg, is 3:23-cv-06618, DeKalb County Pension Fund v. Roblox Corporation et al.
Gaming & Esports
January 05, 2024, 9:52 AM