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.

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

Investment research and advocacy firm Hindenburg says it's shorting Roblox stock because the game platform is misleading investors by overstating player counts and presenting financial figures that paint the company as profitable. Roblox also hosts a range ...