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Roblox Accused of Lying To Investors About User Numbers

Investment firm Hindenburg Research claims Roblox is "consistently overstating the amount of people on its platform by 25 percent to 42 percent or more." The Verge reports: Roblox, which went public in 2021, reported having 79.5 million daily active users in its most recent earnings report. However...

However, Hindenburg claims Roblox "intentionally conflates" actual people with daily users, as that number could also include alt accounts and bots. Hindenburg is an activist short-selling firm that infamously publishes research when it says it's identified something shady about a business, allowing it to make a profit as its share value declines. Subsequently, an investigation by the Securities and Exchange Commission (SEC) resulted in a four-year prison sentence for its founder, Trevor Milton.

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