A shareholder is suing Roblox, alleging company leaders misled investors about the potential negative effects of age verification checks on platform growth.

The lawsuit names nine current and former officers and directors of Roblox Corp., including co-founder and CEO David Baszucki. It alleges the company misled shareholders about the potential impact of age verification requirements on user growth and traffic.

According to the complaint, the implementation of age verification checks in January “significantly” reduced daily active users, despite executives and directors previously claiming the checks would not affect the platform’s long-term growth and traffic.

Additionally, it claims Baszucki engaged in insider sales, profiting more than $750 million from “unusually timed” sales of his shares in the company.

The lawsuit was filed Oct. 20 in Clark County District Court by Daniel Colbert, a Roblox shareholder since 2023, including a demand for a jury trial. Colbert is suing for breach of fiduciary duties, unjust enrichment and corporate waste.

Roblox did not respond to an immediate request for comment.

Lawsuit details

Roblox, which reincorporated in Nevada from Delaware in May 2025, is an online gaming platform with tens of millions of players, the majority of whom are children.

According to the lawsuit, from Oct. 31, 2024 to the present day, Roblox concealed information about the effects of mandatory age verification on user engagement, organic user acquisition and bookings growth, meaning purchases on the platform.

Roblox consistently finds itself embroiled in legal battles and controversy regarding child safety on its platform. Lawsuits in Nevada have been filed as recently as Oct. 14, after a 9-year-old girl allegedly received sexually explicit photographs from a predator she met on the platform.

Due to ongoing concerns from the public and even the state of Nevada, the company has implemented mandatory age verification checks, which use AI-based facial age estimation.

Once completed and verified, the checks restrict communications between adults and users under the age of 16. If not completed, users cannot use chat or social functions on the platform.

During an earnings call for the third quarter of 2025, top executives announced the rollout of age verification checks, the lawsuit stated. Leaders at the company specifically stressed that the enhanced age verification “would not have any meaningful effect on the Company’s projected growth outlook,” according to the lawsuit.

Leaders even claimed age verification checks could potentially help the growth of users 18 and older on the platform, according to quotes from the call mentioned in the lawsuit.

“We have more conviction than ever in the ability for Roblox to grow in excess of 20 percent,” Chief Financial Officer Naveen Chopra said during the call, the lawsuit stated. “Our platform is healthier than ever.”

Following the January rollout of age verification checks, the lawsuit alleges those statements proved misleading.

Age checks and user growth

During an earnings call for the first quarter on April 30, the company revealed that “new age verification software would significantly reduce its daily active users for the foreseeable future,” according to the lawsuit.

According to the lawsuit, Roblox’s January rollout of age verification checks slowed user growth. Daily active users rose 35 percent year over year in the first quarter, down from growth of roughly 70 percent in each of the previous two quarters.

Only 51 percent of daily users had completed the age verification check, according to the lawsuit, resulting in “dramatically lower engagement on the platform.” The lawsuit said the chat function was a “big draw” for users and that restricting it to users who had completed verification reduced organic sign-ups.

Additionally, the company reduced its “bookings guidance,” or the amount it expected users to spend on the platform, from around $8.5 billion to $7.3 billion.

“We believe as a result of age check also and reduced communication … we have seen a reduction in app store ratings,” Baszucki said during the earnings call, according to a quote in the lawsuit. “We believe this may be contributing to a reduction in organic sign-ups that typically flow from app stores.”

Following the call, Roblox’s stock fell 18 percent, from a closing market price of $55.26 per share on April 30 to $45.13 per share on May 1, the lawsuit stated.

Stock sales

Additionally, the lawsuit alleges insider sales by Baszucki.

The lawsuit alleges Baszucki made “unusually timed” sales of more than 9.3 million shares between November 2024 and February 2026, generating approximately $756 million in proceeds.

Colbert is not asking for age verification to be overturned. In fact, Colbert included details about Roblox’s previous lack of safeguards for its child users.

Instead, he is asking the court to hold Roblox’s directors and executives accountable for alleged wrongdoing, recover damages and return compensation paid to them. The lawsuit also seeks changes to the company’s governance, stronger internal controls, the replacement of certain directors and more power for shareholders to nominate board members.

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