Fraud Claims Dismissed, Negligence Stands

Roblox”s most recent motion to dismiss the gambling-based class-action complaint brought by parents, guardians, and minor-aged users of its program succeeded in part, as the state-law fraud claims and the request for injunctive relief were inadequately pled and dismissed without leave to amend. However, the class claim based on negligence and the request for monetary relief survived the motion to dismiss stage.

Going forward, the case will likely be decided based on how the standard of reasonable care is applied. The Court noted that in social media-based cases, the operation of the platforms was treated as conduct and standard negligence law applied. However, should the virtual world created and managed by Roblox be viewed in either a product liability light, or treated similarly to physical land with a heightened standard to keep the land safe and warn of dangers, Roblox could face a more difficult challenge in escaping liability.

The motion to dismiss is granted with respect to the fraud-based state law claims (Counts 3-8) and the request for injunctive relief. The motion to dismiss is denied with respect to the negligence claims and the request for monetary relief.

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