The developers of Roblox have agreed to pay more than $12 million to the state of Nevada as part of a move that the state and the studio believe will help better protect children.
Roblox Corp. is paying the money in lieu of litigation, and state Attorney General Aaron Ford said the first-of-its-kind agreement will see the developer give $10 million over three years to support Boys & Girls Club and other groups like it. Additional money from the agreement will help fund the creation of a "law enforcement liaison position" and to help fund an online safety awareness campaign, according to the AP.
Other states, including Texas and Kentucky, have launched formal lawsuits against Roblox Corp., claiming the company is not doing enough to safeguard children.
"This settlement will create a safer environment for our children online, and I hope that it will serve as a bellwether for how online interactive platforms allow our state's youth to use their products," Ford said.
Roblox's chief safety officer, Matt Kaufman, said the developer was proud to work with Ford on "this landmark agreement." Kaufman said it serves as a model for how the video game business and regulators can work together to help keep kids safe.
That may be true, but it's also advantageous for a company like Roblox Corp. to settle out of court for a variety of reasons, from information-disclosure to public reputation, and more.
In terms of public image, settling out of court in this manner puts a more positive spin on things, which could in turn help the company's stock go up. Roblox's stock is currently down from a 52-week high of $150 to around $60 today. The stock is up today, and has been improving all month.
To put the $12 million settlement into perspective, Roblox Corp. made $1.4 billion in revenue for its latest quarter. The company has never made a profit in its history, however.
The Nevada settlement comes just ahead of Roblox's big new update in June that will add new account-types for children, featuring communications restrictions and other measures to help protect kids.
In other news, a native version of Roblox just launched on PS5 this week, adding faster load times and other features that take advantage of the console's increased horsepower. Additionally, the 99 Nights in the Forest game that's hosted on Roblox just got a movie deal.
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Roblox Corp. is paying the money in lieu of litigation, and state Attorney General Aaron Ford said the first-of-its-kind agreement will see the developer give $10 million over three years to support Boys & Girls Club and other groups like it. Additional money from the agreement will help fund the creation of a "law enforcement liaison position" and to help fund an online safety awareness campaign, according to the AP.
Other states, including Texas and Kentucky, have launched formal lawsuits against Roblox Corp., claiming the company is not doing enough to safeguard children.
"This settlement will create a safer environment for our children online, and I hope that it will serve as a bellwether for how online interactive platforms allow our state's youth to use their products," Ford said.
Roblox's chief safety officer, Matt Kaufman, said the developer was proud to work with Ford on "this landmark agreement." Kaufman said it serves as a model for how the video game business and regulators can work together to help keep kids safe.
That may be true, but it's also advantageous for a company like Roblox Corp. to settle out of court for a variety of reasons, from information-disclosure to public reputation, and more.
In terms of public image, settling out of court in this manner puts a more positive spin on things, which could in turn help the company's stock go up. Roblox's stock is currently down from a 52-week high of $150 to around $60 today. The stock is up today, and has been improving all month.
To put the $12 million settlement into perspective, Roblox Corp. made $1.4 billion in revenue for its latest quarter. The company has never made a profit in its history, however.
The Nevada settlement comes just ahead of Roblox's big new update in June that will add new account-types for children, featuring communications restrictions and other measures to help protect kids.
In other news, a native version of Roblox just launched on PS5 this week, adding faster load times and other features that take advantage of the console's increased horsepower. Additionally, the 99 Nights in the Forest game that's hosted on Roblox just got a movie deal.
Source