Overview

• Louisiana Attorney General Liz Murrill filed a state suit on August 14 charging that Roblox failed to inform parents of risks, allowed sexual abuse material and let predators operate unchecked
• Multiple private federal complaints, including one in the Northern District of California, describe a case in which a predator posed as a child to coerce a 10-year-old in Michigan into sending explicit images
• Plaintiffs contend that Roblox profits from transaction fees tied to its Robux currency when predators use digital payments to pressure minors into sextortion schemes
• Roblox has highlighted recent rollouts of AI-powered child endangerment detection, video selfie age verification for teens and stricter parental controls as evidence of its commitment to safety
• The wave of lawsuits has driven Roblox’s shares down more than 6%, intensified political scrutiny and raised questions about the company’s regulatory exposure