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In August 2023, a class-action lawsuit was brought against Roblox Corporation. The lawsuit alleges that Roblox profited off minors when they bought Robux to participate in third-party gambling rings, violating the [[Racketeer Influenced and Corrupt Organizations Act|RICO act]].<ref>{{Cite web |title=Roblox Accused of Concocting Illegal Gambling Ring for Minors |url=https://news.bloomberglaw.com/privacy-and-data-security/roblox-accused-of-concocting-illegal-gambling-ring-for-minors |access-date=2024-04-07 |website=Bloomberg Law |language=en}}</ref><ref>{{Cite web |title=Colvin v. Roblox Corporation |url=https://www.courtlistener.com/docket/67694746/1/colvin-v-roblox-corporation/ |access-date=2024-04-07 |website=CourtListener |language=en-us}}</ref>
=== Louisiana attorney general lawsuit ===
{{Current|date=August 2025|2=current lawsuit|section}}
In August 2025, Roblox Corporation became embroiled in a public controversy regarding its moderation policies. The company sent a [[cease-and-desist]] letter to a [[YouTuber]] known as "Schlep," who was prominent for conducting [[sting operation]]s against alleged [[online predator]]s using the platform. Roblox's letter cited Schlep's activities, which he organized through what he termed "Vigilante Groups," as a violation of the platform's terms of service. Concurrent with the legal notice, Roblox terminated all accounts associated with Schlep and his group, and [[IP address blocking|IP-banned]] him from the platform.<ref>{{Cite web |date=2025-08-14 |title=‘Predator hunter’ YouTuber hit with cease and desist letter from Roblox CEO |url=https://www.independent.co.uk/news/world/americas/roblox-ceo-resign-cease-desist-schlep-b2807586.html |access-date=2025-08-15 |website=The Independent |language=en}}</ref> This has also prompted multiple Roblox-affiliated content creators of the Roblox Video Stars Program to leave in protest. In the days following the controversy, Roblox Corporation’s stock price fell by over 9%, reflecting investor concerns.<ref>{{Cite web |last=Editor |first=Ahmed Farhath, SA News |date=2025-08-15 |title=Roblox stock gets punished as outrage rises against platform for enabling child abuse (RBLX:NYSE) {{!}} Seeking Alpha |url=https://seekingalpha.com/news/4486117-roblox-stock-gets-battered-as-outrage-rises-against-platform-for-enabling-child-abuse |access-date=2025-08-15 |website=seekingalpha.com |language=en}}</ref>
The company's actions were met with major backlash from many online communities who viewed Schlep's actions as a necessary form of community policing. The situation escalated significantly days later and included calls for the CEO to resign and a petition by U.S. representative [[Ro Khanna]].<ref>{{Cite web |last=Liddell |first=James |date=2025-08-14 |title=‘Predator hunter’ YouTuber hit with cease and desist letter from Roblox CEO |url=https://www.independent.co.uk/news/world/americas/roblox-ceo-resign-cease-desist-schlep-b2807586.html |access-date=2025-08-15 |website=[[The Independent]] |language=en}}</ref> On August 14, [[Louisiana]] [[Attorney General]] [[Liz Murrill]] filed a child protection [[lawsuit]] against Roblox Corporation. The suit alleged that by actively shutting down independent efforts to expose potential dangers on its platform, Roblox was failing in its duty to protect underage users from harm.<ref>{{Cite web |last=Liddell |first=James |date=2025-08-15 |title=Louisiana AG sues Roblox and calls it ‘perfect place for pedophiles’ |url=https://www.independent.co.uk/news/world/americas/roblox-lawsuit-louisiana-attorney-general-b2808252.html |access-date=2025-08-15 |website=[[The Independent]] |language=en}}</ref>
== References ==
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