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Roblox Corp. (NYSE:RBLX) has been sued by Texas Attorney General Ken Paxton, who on Thursday accused the gaming platform of disregarding safety laws and misleading parents about potential risks to young users.
In a post on X, Paxton accused Roblox of prioritizing “pixel pedophiles and corporate profit” over the well-being of Texas children.
“We cannot allow platforms like Roblox to continue operating as digital playgrounds for predators,” Paxton said, adding that the company “must do more” to protect kids.
Roblox did not immediately respond to Benzinga‘s request for comment.
Paxton’s lawsuit also follows that of attorneys general of Kentucky and Louisiana, as well as many private plaintiffs, who have alleged that Roblox’s platform has become a haven for child predators and sexual exploitation.
In July, a lawsuit was filed against the gaming platform and Discord for allegedly enabling the sexual exploitation of a minor.
In response to the lawsuit, Roblox had told Benzinga, “Protecting children is a top priority, and we invest significant resources in advanced safety technology, including a combination of machine learning and human moderation teams working 24/7 to detect and address inappropriate content and behavior.”
Roblox’s financial performance has been strong. In October, the company’s upbeat quarterly results impressed investors, sparking optimism about its growth potential. However, the company’s cautious outlook for 2026 created some uncertainty.
According to an October regulatory filing, Roblox said it averaged 151.5 million daily active users in the third quarter. About 40% of Roblox’s daily active users were under the age of 13 in 2024, the company said.
Investor Ross Gerber has been a vocal critic of Roblox, accusing the company of unethical practices and calling for a leadership overhaul. The current lawsuit by the Texas AG further intensifies the pressure on Roblox to address these concerns.
According to Benzinga Edge Stock Rankings, Roblox has a growth score of 31.90% and a momentum rating of 90.44%. Click here to see how it compares to its peer companies.
Price Action: On a year-to-date basis, Roblox stock gained 72.13%, as per data from Benzinga Pro. On Thursday, it slid 0.94% to close at $101.28.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Posted In: RBLX
