(Updates with Roblox's response and updated stock price movement.)
Roblox (RBLX) is being sued by Louisiana on accusations that the gaming platform fails to enforce safety controls to protect children and facilitates the "distribution of child sexual material," a statement from state attorney general Liz Murrill's office showed.
The statement said that the lack of strong age verification processes or parental permission allows adults to pose as children and minors to bypass requirements intended for child protection.
"Roblox is overrun with harmful content and child predators because it prioritizes user growth, revenue, and profits over child safety," the statement said.
Roblox said in a statement posted on its website that while it doesn't comment on pending litigation, any assertion that the company would "intentionally put our users at risk of exploitation is simply untrue."
The company disputes the allegations and is committed to working with Murrill to keep kids safe, a Roblox spokesperson said in a statement e-mailed to MT Newswires.
The company's shares were down 0.8% in recent premarket activity Monday, following a 6.3% drop Friday.
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