Roblox is facing accusations that it lied to investors about the number of people who use the platform. In a report published on Tuesday, the investment firm Hindenburg Research claims Roblox is “consistently overstating the amount of people on its platform by 25 percent to 42 percent or more.

Hindenburg Research disclosed a short position in Roblox on Tuesday, alleging that the gaming platform popular among young children inflated metrics including user numbers and engagement.

The research firm alleges that the videogame company has exaggerated user data and compromises child safety.

Roblox Corp. shares are down 3.3% Tuesday after short seller Hindenburg Research alleged that the online gaming company has inflated key metrics.

Shares of Roblox fell Tuesday as short seller Hindenburg Research accused the online gaming platform of overstating its user numbers.

Roblox fell as much as 9.4% as the short-seller Hindenburg Research said the popular gaming company was "lying to investors."

Hindenburg Research disclosed a short position in Roblox on Tuesday, alleging that the gaming platform popular among young children inflated metrics including user numbers and engagement. Roblox shares fell as much as 9% after the short seller said the company conflated daily active users (DAUs) with the number of people visiting its platform.