Shares of the California-based video game maker plunged about nine per cent when the market opened Tuesday, following a report from Hindenburg Research alleging the company inflated user metrics and compromised child safety in favour of growth. The stock partially recovered later Tuesday, down just over two per cent. (The Logic)

Talking point: The report adds to Roblox’s child-safety woes. Last week, financial newsletter the Bear Cave alleged the platform has a large-scale problem with child exploitation and inappropriate content, based on a compilation of media reports. Roblox spokesperson Eric Porterfield denied the platform has a widespread child endangerment problem in a statement to The Verge. In a public statement, Roblox said it has robust safety measures and that Hindenburg’s claims about its financials are misleading. Hindenburg is a short seller that will profit if Roblox’s shares fall, while the Bear Cave doesn’t take positions in the companies it covers.