The news: Roblox came under fire this week after investment firm Hindenburg Research published a report accusing the company of misreporting user metrics for years and failing to protect children on its platform from harmful content and predators.
Hindenburg also disclosed it had taken a short position in Roblox, looking to profit from a drop in the stock’s price. Hindenburg has released similar reports on other companies that have led to SEC investigations and indictments. Roblox told CNBC that the Hindenburg financial claims were “misleading.”
The details: The report reignites concerns about Roblox’s ability to effectively moderate its platform and comes as the company works to forge crucial ad industry relationships.