Roblox Shares Plummet Amid Louisiana Attorney General Lawsuit

Roblox shares are down pre-bell following a lawsuit filed by Louisiana's Attorney General over allegations of violating the state's children's privacy law. Roblox operates a free platform for connection and communication where users can create, play, work, and learn through immersive experiences. The platform consists of the Roblox Client, Studio, and Cloud, which allow users to build and share 3D experiences.

Roblox shares are down pre-bell following a lawsuit filed by Louisiana's Attorney General over allegations of violating the state's children's privacy law. The lawsuit, filed on Thursday, alleges that the popular online gaming site has failed to implement effective safety measures to protect child users from adult predators [1].

The lawsuit, filed in state court by Louisiana Attorney General Liz Murrill, claims that Roblox's lack of safety protocols endangers the safety of Louisiana's children. Murrill argues that Roblox prioritizes user growth, revenue, and profits over child safety, allowing harmful content and predators to thrive on the platform [1].

The lawsuit comes amid growing concerns about the safety of children on online gaming platforms. Last month, a lawsuit was filed in Iowa after a 13-year-old girl was allegedly introduced to an adult predator on Roblox, then kidnapped and trafficked across multiple states [1]. Louisiana's Livingston Parish Sheriff Jason Ard has also reported multiple cases involving Roblox, with one instance involving a man using voice-altering technology to pose as a girl on the platform [1].

Roblox, which operates a free platform for connection and communication, has implemented additional measures to enhance child safety. The company has rolled out an artificial intelligence system to detect early signs of possible child endangerment and has launched a feature requiring teenagers aged 13 to 17 to send a video selfie to verify their ages [1]. However, these measures have not been enough to satisfy the Louisiana Attorney General, who is seeking permanent injunctive relief and prohibiting Roblox from engaging in activities that violate the Louisiana Unfair Trade Practices Act [2].

Roblox's shares have been affected by the lawsuit, with the stock down pre-bell on July 2, 2025. Investors are closely watching the developments in the case, as any adverse ruling could have significant implications for the company's business and stock price.

References:
[1] https://www.cnn.com/2025/08/15/us/louisiana-roblox-lawsuit-child-protection-hnk
[2] https://www.wdsu.com/article/louisiana-suing-roblox/65783354