Arkansas Attorney General Tim Griffin has filed a lawsuit against Roblox Corporation and Discord Inc., alleging the platforms prioritized profits while exposing children to sexual exploitation through a deliberate "two-stage predatory pipeline." The complaint, filed in Los Angeles County Superior Court, claims both companies misrepresented their safety measures and made engineering decisions that made it easier for predators to contact minors. The state is seeking financial damages, civil penalties of up to $10,000 per violation, and court orders to halt the alleged conduct under the Arkansas Deceptive Trade Practices Act.

The Lanier Law Firm is representing the State of Arkansas in the litigation, State of Arkansas v. Roblox Corp. et al., Case No. 26STCV18664. The lawsuit alleges that Roblox functions as the first point of contact where predators pose as children, build trust through gameplay and virtual currency, and then migrate victims to Discord. On Discord, anonymous servers and unmonitored direct messages allow exploitation to escalate into sextortion and solicitation of explicit images. The state characterizes this relationship as a "two-stage" progression where predators initiate contact on Roblox and move conversations to Discord for explicit coercion.

Griffin alleges that Roblox failed to deploy age-check tools it already possessed, resisted internal proposals to warn children about grooming behavior, and limited safety spending while revenue expanded. The lawsuit claims Roblox paid more than $900 million a year to developers who allegedly used the platform to spread sexually explicit content across user-created "experiences." Mark Lanier of The Lanier Law Firm stated that Roblox has allowed predators to use voice modulators to pretend to be children because it is good for business, citing evidence that the company's CEO called the problem of child predators an "opportunity."

The filing also targets Discord, which the state reports has more than 200 million monthly active users and an average user age of 16. Arkansas alleges Discord’s design choices let minors bypass parental oversight and allowed adult contacts to send content without screening under default settings. The attorney general’s office cited Discord’s transparency reporting, which showed child-safety violations rose 150% in one quarter. The state criticized Discord's "Family Center" controls and "zero-tolerance" safety claims as misleading.

Legal Framework and Demands

The lawsuit invokes the Arkansas Deceptive Trade Practices Act, the state’s public nuisance statute, and common law unjust enrichment claims. Arkansas seeks repayment of profits it says were wrongfully earned from Arkansas consumers. The state seeks injunctive relief to require both platforms to implement meaningful age verification, parental controls that cannot be overridden by children, and architectural changes to separate child users from adults. This follows similar legal actions by Texas Attorney General Ken Paxton, who has sued both companies for disregarding safety laws and misleading parents.

Company Responses

Roblox stated it is deeply committed to safety and strongly disputes the claims, arguing the lawsuit misrepresents how the platform works. The company highlighted recent measures, including mandatory age checks for chat access and new age-based accounts that align content access with a user’s age. Roblox emphasized its collaboration with law enforcement to hold bad actors accountable.

Discord denied the lawsuit's characterization, stating it does not reflect the platform or its investments in user safety. A spokesperson noted that Discord has no algorithmic feed or infinite scroll, distinguishing it from social media. The company said its safety systems combine technology and human-led investigations, providing tools like Teen Safety Assist and Family Center. Discord expressed a willingness to collaborate with policymakers on online safety.

Roblox Corp. stock climbed nearly 6% on Tuesday, outperforming a weak technology sector as investors reacted to the company’s global rollout of new age-based account features. The Nasdaq fell 1.24%, while the S&P 500 slipped 0.31%, with technology ending as the day’s weakest-performing sector, down 1.7%. Despite the rebound, shares remain down 51.9% over the past 12 months.

Global Rollout Introduces Age-Based Accounts

On Tuesday, Roblox launched Roblox Kids and Roblox Select accounts worldwide for users under 16, expanding the feature beyond its initial rollout in Australia, Indonesia, the Netherlands, and New Zealand. The new age-based account system automatically assigns users based on Roblox’s age-check process and combines content ratings, moderation, chat settings, and parental controls into a single safety framework.

Roblox Kids accounts for ages 5 to 8 offer the platform’s strongest protections, while Roblox Select accounts for ages 9 to 15 provide broader access with age-specific safeguards. The company also expanded parental controls, including game blocking, chat management, and a new feature that lets parents approve specific games outside default settings. Roblox said users who do not complete an age check will eventually lose access to standard accounts and chat features. Later this year, the company plans to adopt the International Age Rating Coalition content rating framework.

Technical Analysis

Roblox is trading 7.7% above its 20-day simple moving average of $44.86 but remains 2.3% below its 50-day SMA of $49.45. The stock also sits 14.5% below its 100-day SMA and 41.6% below its 200-day SMA, showing the longer-term trend remains bearish. The relative strength index stands at 50.01, a neutral reading that suggests the recent rally is more of a stabilization than an overbought surge.

The moving-average setup also remains negative. The 20-day SMA is below the 50-day SMA, while the 50-day SMA crossed below the 200-day SMA in December 2025, forming a bearish “death cross.” The stock established a swing high in April before falling to a swing low and a new 52-week low in May. Immediate resistance sits near $48.50, just below the 50-day SMA. Initial support is around $40.00, close to the recent 52-week low of $40.15.

Price Action

Roblox shares were up 5.80% at $48.31 at the time of publication on Tuesday.