Roblox Shares Slip As SEC Confirms Investigation: Report

Roblox Corp. (NYSE:RBLX) is part of an active and ongoing investigation by the Securities and Exchange Commission, the agency said Friday. 

The Details: The SEC confirmed the investigation Friday in a letter responding to a Freedom of Information Act request from Bloomberg News. 

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The SEC added that it cannot share details on the correspondence between staffers because it could cause "harm to the ongoing enforcement proceeding."

Hindenburg Research, the now defunct short-selling firm, published a report on Roblox last October accusing the company of inflating user metrics and failing to protect children on its platform. 

Hunterbrook Media reported in November that the SEC was investigating Roblox, citing its own Freedom of Information Act requests. Hunterbrook cited an October letter from the SEC in which it stated it was withholding documents "which could reasonably be expected to interfere with enforcement activities."

Roblox shares fell sharply Thursday after the company's fourth-quarter revenue missed estimates. The stock is down again on Friday as investors digest the Bloomberg report. 

Price Action: According to data from Benzinga Pro, Roblox shares are down 1.25% at $66.28 at the time of publication Friday.

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