On February 3, 2022, market analyst The Bear Cave published a report regarding Roblox entitled “Problems at Roblox (RBLX)”, which alleges, in part, that the Company’s “former social media manager ran a pornographic blog while employed by the Company,” and has “engaged in litigation and intimidation to help conceal allegations of pedophilia on the platform.”
On this news, Roblox’s share price fell $5.50 per share, or 8%, to close at $60.67 per share on February 3, 2022, damaging investors.