Roblox (RBLX) stock slipped on Monday as the video game company faces growing legal action over allegations of failing to prevent child exploitation. The latest lawsuit against Roblox comes from Florida Attorney General James Uthmeier. His office has targeted the company for misrepresenting its safety measures and failing to protect children on its platform.
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Uthmeier spoke about the lawsuit on X, formerly Twitter. He said, “Roblox is hiding behind press releases and superficial safety measures while predators are openly grooming and targeting children on its platform. As our criminal investigation continues, we filed a lawsuit to hold Roblox accountable for misrepresenting the platform’s safety.”
Uthmeier is far from the first person to take issue with how Roblox handles minors on its gaming platform. Attorneys General in Kentucky, Louisiana, and Texas have also filed lawsuits against Roblox for similar complaints to the ones in the Florida Attorney General’s lawsuit. There have also been a large number of individual lawsuits filed against the company in relation to its child safety practices.
Roblox Stock Movement Today
Roblox stock was down 2.52% on Monday but remained up 49.12% year-to-date and 44.04% over the past 12 months. The stock has continued to gain as the platform’s popularity grows, bringing with it more users and additional revenue.
RBLX stock trading was limited today, as some 916,000 shares changed hands, compared to a three-month daily average of about 7.26 million units.
Is Roblox Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Roblox is Moderate Buy, based on 14 Buy, eight Hold, and a single Sell rating over the past three months. With that comes an average RBLX stock price target of $141, representing a potential 62.87% upside for the shares.
