Netflix Targeted with Shareholder Lawsuit

Netflix, the world’s largest subscription video-on-demand (SVOD) service provider, is facing a shareholder lawsuit filed by one of its investors. The class action complaint alleges that Netflix violated federal securities laws and failed to disclose material information about their business in violation of SEC rules during an earnings call on November 9th 2018.

The “whats on netflix right now” is a question that many people ask. Netflix has been targeted with a shareholder lawsuit and it will be interesting to see what happens next.

Netflix Targeted with Shareholder Lawsuit

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Netflix’s situation is deteriorating rapidly. Following a drop in stock prices, it is now being sued by shareholders. On January 21, the streaming giant’s shares dropped $110.75 to $397.50 per share, then dropped another $122.42 to $226.19 per share on April 20.

Netflix is accused of making false claims to shareholders and failing to disclose information about its business and operations, according to the complaint. Netflix acknowledged to over-forecasting paid net additions for Q4, causing the first decline in stock prices, according to the report. The second decrease came when Netflix announced that it had lost over 200,00 members. The complaint is available here.

Defendants made materially false and/or misleading statements and failed to disclose substantial unfavorable facts regarding the Company’s business, operations, and prospects throughout the Class Period. Specifically, defendants failed to disclose to investors: (1) that Netflix’s acquisition growth was slowing due to, among other things, customer account sharing and increased competition from other streaming services; (2) that the Company was having trouble retaining customers; (3) that, as a result of the foregoing, the Company was losing subscribers on a net basis; and (4) that, as a result, the Company’s financial results were being harmed.

Sources: Deadline, Variety

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