Roblox Corporation
Roblox Corporation (/ˈroʊblɒks/ ROH-bloks) is an American video game developer based in San Mateo, California. Founded in 2004 by David Baszucki and Erik Cassel, the company is the developer of Roblox, which was released in 2006. As of December 31, 2023, the company employs over 2,400 people.[1]
Company type
- NYSE: RBLX (Class A)
- Russell 1000 component
2004 in Menlo Park, California, U.S.
David Baszucki (CEO)
US$2.80 billion (2023)
US$−1.26 billion (2023)
US$−1.16 billion (2023)
US$6.17 billion (2023)
US$76.3 million (2023)
2,457 (2023)
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Reception
Accolades
Roblox Corporation has been ranked on Pocket Gamer.biz's top lists of mobile game developers, placing sixth in 2018,[29] eighth in 2019,[30] and sixth in 2020.[31] Fortune featured it as one of the best small and medium-sized workplaces in the San Francisco Bay Area, placing it sixteenth in 2019 and fortieth in 2021.[32][33] In 2016 and 2017, Inc. ranked Roblox Corporation on its "Inc. 5000" list of fastest-growing privates companies in the United States.[34][35] In 2020, Fast Company regarded it as the ninth-most innovative company in the world, as well as the most innovative in the gaming sector.[36][37]
Legal disputes
In June 2016, Cinemark Theatres filed a lawsuit against Roblox Corporation over trademark infringement. The plaintiff cited several user-created games within Roblox that recreated Cinemark locations, including the trademarked branding.[46]
In February 2018, YouTuber Kerstin Hoffmann, known as Keisyo, claimed that Roblox Corporation owed her $150,000 because the company had stopped her from converting her 42 million Robux balance into real-world money for no given reason. In response, Roblox Corporation stated that she could not transfer her Robux because she had earned them through "fraudulent activities".[47]
In May 2021, an unnamed litigant filed a class-action lawsuit against Roblox Corporation, accusing the company of ripping off players with bogus purchases. Stating "The company's decision to sell first and 'moderate' later has obvious monetary benefit for Roblox, by the time defendant has deleted items from the Avatar Shop and users' inventories, it has already taken its 30% commission from the sale." Roblox Corporation said that they review all content submitted by developers through a multi-step review process before it appears on the platform.[48] In May 2023, Roblox agreed to settle the suit for $10 million, in the form of a Robux refund to any users who bought an item before May 11, 2023.[49][50][51]
In June 2021, the National Music Publishers' Association filed a lawsuit against Roblox Corporation for $200 million, accusing the company of infringing copyright laws. The complaint states, "Roblox actively preys on its impressionable user base and their desire for popular music, teaching children that pirating music is perfectly acceptable."[52][53] Roblox Corporation responded to the lawsuit by contending that they "do not tolerate copyright infringement" and expressing an intent to contest the lawsuit.[54]
On September 27, 2021, Roblox and NMPA announced they had reached an agreement which "settles claims filed by NMPA members [and] offers an industry-wide opt-in open to all eligible NMPA publishers," settling the lawsuit.[55]
In November 2021, Roblox Corporation filed a $1.65 million lawsuit against YouTuber Benjamin Robert Simon, also known online as Ruben Sim. The complaint states a breach of contract, "cyber-bullying and harassing Roblox employees and executives" and "posting false and misleading terrorist threats" during the Roblox Developer Conference 2021 which led to it being temporarily shut down.[56][57][58] On January 16, 2022, the judgement was agreed upon both parties which requires Simon to pay $150,000 to Roblox Corporation. With the judgement, Simon is permanently banned from accessing Roblox. Due to it being resolved out of court, a legal precedent for other users who may evade IP bans or violate a game's terms of service was not established.[59]
In October 2022, a lawsuit was filed by a parent in the San Francisco Superior Court. The lawsuit alleges that Roblox connected their daughter with predators, who sexually exploited her, coercing her to send sexually explicit photos to them on Discord and Snapchat, who were also named in the lawsuit.[60][61]
In August 2023, a class-action lawsuit was brought against Roblox Corporation. The lawsuit alleges that Roblox profited off of minors when they bought Robux to participate in third-party gambling rings, violating the RICO act.[62][63]