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.

A Hindenburg report said Roblox has inflated key metrics and alleged that it doesn't have sufficient safety screens for children. Roblox didn't immediately respond.

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

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.