Roblox shareholder files Clark County lawsuit claiming company leaders misled investors about age verification impact

What happened

A Roblox shareholder has sued nine current and former officers and directors of Roblox Corp., including co-founder and CEO David Baszucki, the Las Vegas Review-Journal reported. The complaint alleges company leaders misled investors about how mandatory age verification checks would affect growth on the online gaming platform.

Daniel Colbert, who has held Roblox shares since 2023, filed the suit Oct. 20 in Clark County District Court and demanded a jury trial. He is suing for breach of fiduciary duties, unjust enrichment and corporate waste, according to the Review-Journal. The claims are allegations made in the lawsuit.

What the lawsuit alleges

According to the complaint, Roblox concealed information from Oct. 31, 2024 to the present about how age verification would affect user engagement, organic user acquisition and bookings growth, a term for purchases on the platform.

Statements about growth

The lawsuit says executives announced the age verification rollout during an earnings call for the third quarter of 2025. Leaders stressed the change "would not have any meaningful effect on the Company's projected growth outlook," according to the lawsuit as reported by the Review-Journal.

Chief Financial Officer Naveen Chopra said on that call, "We have more conviction than ever in the ability for Roblox to grow in excess of 20 percent," the lawsuit stated. Leaders also suggested the checks could help grow the number of users 18 and older.

What changed after the rollout

The checks took effect in January. The complaint says they "significantly" reduced daily active users. On an April 30 earnings call, the company said the new software would significantly reduce daily active users for the foreseeable future, according to the lawsuit.

The lawsuit says daily active users rose 35 percent year over year in the first quarter, down from roughly 70 percent growth in each of the previous two quarters. Only 51 percent of daily users had completed verification, and the company cut its bookings guidance from around $8.5 billion to $7.3 billion. The stock fell 18 percent, from $55.26 per share on April 30 to $45.13 on May 1, the suit states.

Stock sales by the CEO

The complaint alleges Baszucki made "unusually timed" sales of more than 9.3 million shares between November 2024 and February 2026. According to the lawsuit, those sales generated approximately $756 million.

About the company

Roblox reincorporated in Nevada from Delaware in May 2025, the Review-Journal reported. The platform has tens of millions of players, and most of them are children.

The child safety backdrop

Roblox has faced repeated legal fights over child safety on its platform. Lawsuits were filed in Nevada as recently as Oct. 14, after a 9-year-old girl allegedly received sexually explicit photographs from a predator she met on Roblox, according to the Review-Journal.

Amid concerns from the public and the state of Nevada, the company adopted mandatory checks that use AI-based facial age estimation. After a user is verified, the checks limit communications between adults and users under 16. Users who skip the check cannot use chat or social features.

What the shareholder wants

Colbert is not asking the court to overturn age verification, and his complaint describes the platform's earlier lack of safeguards for children. Instead, he seeks to hold directors and executives accountable, recover damages and have compensation paid to them returned.

The suit also asks for changes to company governance, stronger internal controls, the replacement of certain directors and more power for shareholders to nominate board members, the Review-Journal reported.

What to watch next

• How the case proceeds in Clark County District Court, where Colbert has demanded a jury trial.
• Whether the court acts on requests to recover damages and return compensation paid to Roblox leaders.
• The outcome of requested governance changes, including replacing certain directors and expanding shareholder nomination power.
• Other Nevada lawsuits over child safety on Roblox, including those filed as recently as Oct. 14.