Home Entertainment Netflix sued by shareholders over subscriber loss

Netflix sued by shareholders over subscriber loss

netflix-lagospost.ng
Advertisement

Global streaming giant, Netflix is at the center of a lawsuit claiming the platform misled investors about subscriber loss over the last six months, culminating in the stock price plummeting.

According to reports, the lawsuit, filed in a federal district court in San Francisco accuses the online streamer of not disclosing the true extent of its recent subscriber loss.

Netflix had announced last month that it lost over 200,000 subscribers in the first quarter of 2022 with an estimated 2 million by Q2.

The shareholders alleged that Netflix violated U.S. security laws by making “materially false and/or misleading statements” to its shareholders. They also claimed that Netflix “failed to disclose material adverse facts about the company’s business, operations and prospects.”

The lawsuit seeks unspecified monetary damages on behalf of investors who owned Netflix shares between October 19, 2021, and April 19, 2022.

Damages claimed include “compensatory damages in favor of Plaintiff and the other Class members against all defendants, jointly and severally, for all damages sustained as a result of Defendants’ wrongdoing, in an amount to be proven at trial, including interest thereon,” Variety reports.

Since announcing its staggering loss, Netflix has reacted by introducing early tests to crack down on password sharing.

AdvertisementFirst Bank 320x100

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.