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Investor Ross Gerber, of Gerber Kawasaki Wealth and Investment Management, launched a scathing attack against video game company Roblox Corp. (NYSE:RBLX), accusing the company of unethical practices while calling for a leadership overhaul.
RBLX is trading near recent highs. Watch the momentum here.
On Thursday, in a post on X, Gerber said, “Roblox is basically a criminal enterprise,” referring to its business model and user environment.
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Gerber called the platform “warped and corrupt,” and “filled with predators.” He concluded by saying that the company “must change management,” given the growing instances of young users falling prey to predators on the platform.
Roblox did not immediately respond to Benzinga’s request for a comment on this matter. This story will be updated as soon as we hear back.
Roblox has faced a string of lawsuits in recent months, accusing the gaming platform of failing to institute sufficient safeguards to protect minors.
The first one was filed by a plaintiff who has sued both Roblox and the group chat platform Discord, saying that they allowed predators to target and abuse them when they were still minors. The lawsuit alleges that the platforms misrepresented their safety features, leading parents to believe that they were appropriate for children.
Just weeks after this, Louisiana’s attorney general filed a lawsuit against Roblox, accusing the platform of enabling child sexual abuse and exploitation.
Roblox shares were down 2.94% on Thursday, closing at $134.49, and are down another 2.30% in overnight trade. The stock scores high on Momentum, but does poorly on Growth in Benzinga’s Edge Stock Rankings, with a favorable price trend in the short, medium and long terms. Click here for deeper insights into the stock, its peers and competitors.
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Posted In: RBLX
