Authored by Janice Hisle via The Epoch Times,
In his latest action targeting Minnesota fraud, Dr. Mehmet Oz, administrator for the Centers for Medicare & Medicaid Services, said his agency would delay paying $91 million in Medicaid claims to the state.
“This is about protecting patients and respecting taxpayers,” Oz said in a video posted April 30 on X, announcing the decision.
The money being withheld includes “$76 million tied to 14 service categories highly vulnerable to fraud,” Oz wrote on X. The remaining deferred payments—$14 million—could potentially have been directed “towards illegal immigrants who weren’t supposed to be getting this coverage,” he stated in the video.
The most recent amounts are on top of an initial $259 million the agency halted in February amid the North Star State’s ongoing fraud scandals.
Minnesota sued Oz’s agency and the U.S. Department of Health and Human Services over that decision, but earlier this month a federal court refused to unfreeze the funds as the litigation continues.
Oz said he notified Minnesota Gov. Tim Walz and other state officials before going public with his most recent decision. The Epoch Times sought comment from Walz but received no reply prior to publication.
Minnesota’s fraud scandals drew widespread attention in late 2025. Since then, President Donald Trump has ratcheted up fraud investigations across the nation. Trump appointed Vice President JD Vance to head an anti-fraud task force and the Justice Department formed a National Fraud Enforcement Division.
Oz’s new Minnesota funding freeze comes two days after agents raided 22 Minnesota sites in connection with fraud investigations.
The state’s issues with the defrauding of its public programs follow “a pattern we can’t ignore,” Oz said.
“Minnesota’s Medicaid program has shown serious vulnerabilities to fraud,” Oz wrote. “These are not isolated breakdowns—they point to systemic issues that must be addressed.”
The federal government funds roughly half of Medicaid, he wrote, which gives his agency “the authority and the responsibility to ensure those dollars are spent legally and appropriately.”
Medicaid will refuse to pay “bad bills,” he said, adding that Minnesota is therefore being asked to provide more documentation to justify payment of the requested funds. “When something doesn’t look right, we investigate; it’s our job.”
Oz said his agency is providing “as much support as we can” to help Walz “turn this around.”
Earlier this year, following months of nationwide attention on Minnesota’s fraud-plagued programs, Walz asked state lawmakers to enact what he called “a comprehensive anti-fraud package.”
In an April 17 newsletter, Minnesota Rep. Kristin Robbins, who chairs the state’s anti-fraud legislative committee, said she remains concerned that officials with two key state agencies have continued to testify that “they don’t think anyone who fails to do their job will be fired.”
“Instead, they talked about how they will provide additional training and support,” Robbins said.
Robbins is running as a Republican gubernatorial candidate to replace Walz, who withdrew his reelection bid amid the scandals. She wrote that she supports a few of Walz’s fraud-prevention ideas, including upgrading computer systems that are used to verify eligibility for government benefits. She also agrees with Walz that the time limits for prosecuting fraud crimes should be extended beyond the current six years. Walz proposed a one-year extension, Robbins said, but she proposed a bill calling for an additional four years so that prosecutors could move forward with charges a decade after the alleged offenses.
“The most important element in preventing fraud is creating a no fraud, no excuses culture,” Robbins wrote.
Tyler Durden Fri, 05/01/2026 - 09:30Online gaming platform Roblox crashed the most in four years in premarket trading to the tune of 24%, after the company reported weaker-than-expected first-quarter user metrics and slashed its full-year bookings outlook.
One of the major problems plaguing Roblox has been that new child-safety features, including age-verification requirements and limits on platform communication, have slowed user growth.
Daily active users came in at 132 million, missing the Bloomberg Consensus estimate of 143.8 million, while hours engaged also missed estimates.
Here's a snapshot of first-quarter results (courtesy of Bloomberg):
Daily active users 132 million, estimate 143.8 million (Bloomberg Consensus)
Bookings $1.7 billion, estimate $1.73 billion
Hours engaged 31 billion, estimate 33.68 billion
Revenue $1.4 billion, estimate $1.42 billion
Loss per share 35c vs. loss/shr 32c y/y, estimate loss/shr 40c * Free cash flow $596 million, estimate $564.5 million
Despite the user and bookings misses, free cash flow exceeded Bloomberg Consensus estimates, coming in at $596 million versus expectations of $564.5 million.
Second-quarter forecast (courtesy of Bloomberg):
Sees bookings $1.55 billion to $1.61 billion, estimate $1.88 billion
Sees revenue $1.39 billion to $1.45 billion, estimate $1.45 billion
Sees consolidated net loss $242 million to $257 million, estimate loss $253 million
And full-year forecast (courtesy of Bloomberg):
Sees bookings $7.33 billion to $7.60 billion, saw $8.28 billion to $8.55 billion, estimate $8.38 billion
Sees revenue $5.87 billion to $6.14 billion, saw $6.02 billion to $6.29 billion, estimate $6.6 billion
Sees consolidated net loss $1.04 billion to $1.18 billion, saw loss $1.14 billion to loss $1.30 billion, estimate loss $1.15 billion
Goldman analyst Eric Sheridan offered clients his first take on the earnings:
In its Q1 '26 earnings report, Roblox (RBLX) management framed a few key themes: 1) the rollout of age verification resulted in larger than expected engagement headwinds during the quarter – with management framing decreased communication (in-game chat) within experiences as having a likely impact on App Store ratings (and driving headwinds to organic user acquisition); 2) on the back of engagement headwinds, paired with the exit from Russia, Q1 DAUs underperformed relative to GS/Street expectations – and is now expected to continue to decline on a sequential basis during Q2'26; 3) positive commentary surrounding US O18 DAUs – with the cohort growing 40%+ YoY (vs. overall UCAN DAU growth of 17% YoY during Q1); & 4) an emphasis on scaling out novel experiences – with mgmt. supporting the rollout of novel game creation through an increase in targeted DevEx rates, & the announcement of several creator programs (incl. Roblox Jumpstart & Incubator).
In total, Roblox management initiated and implemented a series of long-term structural changes (which should be positive for long-term platform health and growth), including a lowered 2026 guidance for bookings & Adj. EBITDA, but by doing so, the company must now rebuild investor confidence in the building blocks toward its long-term goals of scaling to 10%+ market share in the US/global gaming content market while also navigating increased regulatory scrutiny on user safety.
Over the coming quarters, we believe that further visibility into user growth (acquisition & retention), and engagement heading into 2H will likely be needed for investors to gain confidence around the long-term growth algorithm of RBLX. To be more pointed, this is unlikely to be a one quarter recovery story – we think additional visibility into the navigation past tougher comps in 2H 2026 and the trajectory of 2027+ operating margins will be critical for forward operating estimates and a truer measure of valuation multiples aligned with growth outcomes. That said, at current share price levels, the valuation skew on the shares leaves us constructive on the stock.
While this reset in expectations is difficult, we view Roblox mgmt as reiterating its long-term goals surrounding: 1) compounded forward bookings growth of 20%+; 2) the potential for increased user monetization on the back of a number of initiatives (optimized and dynamic pricing in emerging markets, scaling of Novel games, etc.); & 3) a scaling Adj. EBITDA margin in 2027+ on the back of fixed cost leverage – even when including DevEx increases.
We reiterate our Buy rating on the shares and update our forward operating estimate for this set of earnings results & mgmt commentary and adjust our 12-month price target from $125 to $65.
Q1'26 Positives & Negatives:
Positives: a) Positive commentary surrounding the O18 user opportunity with the US cohort growing 40%+, with mgmt also highlighting that the cohort monetizes at a 50%+ higher rate than U18 US DAUs; b) continued expansion of offerings to native advertisers & adoption by creators, with more than 60 out of the top 100 creators using RBLX’s native ads manager – and mgmt. reiterating confidence surrounding the long-term growth potential of the business initiative; & c) mgmt reiterated their commitment toward driving an expansion in Novel game offerings – with the announcement of targeted DevEx rate increases (beginning on June 8th) & the launch of several programs to support creators (incl. Roblox Jumpstart & Incubator).
Negatives: a) Q2 & 2026 bookings/Adj. EBITDA guidance came in well below GS/Street (and prior FY26 guidance) estimates, as the company reflects ongoing headwinds from safety initiatives, continued investments into long-term strategic priorities, paired with lower fixed cost leverage (due to lower bookings growth assumptions); b) Q1 DAUs were below GSe/Street expectations due to greater-than-expected headwinds from the rollout of age-checks and the platform ban in Russia – with mgmt. also expecting DAUs to continue to decline on a sequential basis during Q2; c) on the back of age verification checks (which were a headwind to communication on the platform during Q1), RBLX App Store ratings declined, resulting in a reduction to organic signups that have traditionally been derived from the app store; & d) mgmt noted that additional algorithm & home page layout experimentation (which are expected to continue in Q2) could result in near-term headwinds to bookings & engagement.
Additional institutional commentary (courtsey of Bloomberg):
Bloomberg Intelligence analyst Nathan Naidu
Morgan Stanley analyst Matthew Cost (overweight, PT $62)
Roblox's age verification system is creating headwinds
"That said, this system is fully within RBLX's control and fixes are on the way, as strength beneath the surface could create greater room for revisions ahead."
Jefferies analyst James Heaney (hold, PT $46 from $60)
Against what were already low expectations, Roblox's updated FY26 bookings forecast "will continue fueling the bear case for the stock."
"Primary issues were unexpectedly negative impacts from age check rollout and discovery algo changes, both of which could be multi-quarter headwinds."
Market reaction to the dismal earnings report sent Roblox shares crashing in premarket trading, down 24%, and if losses persist through the cash session, this would be the largest intraday decline since the 26% plunge on February 16, 2022.
Boom/bust...
The broader takeaway is that parents may be becoming more aware of the risks of their children spending hours in online gaming ecosystems, particularly on platforms with social chat features and monetized engagement loops.
Tyler Durden Fri, 05/01/2026 - 09:10