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Netflix, Inc. Class Action Lawsuit - NFLX

Company Name
Netflix, Inc.
Stock Symbol
NFLX
Class Period
October 19, 2021 to April 19, 2022
Motion Deadline
July 5, 2022
Court
Northern District of California
47 days left to seek lead plaintiff status

Case Summary

The Netflix class action lawsuit seeks to represent purchasers of Netflix, Inc. (NASDAQ: NFLX) common stock or call options, or sellers of put options, between October 19, 2021 and April 19, 2022, inclusive (the “Class Period”).  Commenced on May 3, 2022, the Netflix class action lawsuit – captioned Fiyyaz Pirani, as Trustee of Imperium Irrevocable Trust v. Netflix, Inc., No. 22-cv-02672 (N.D. Cal.) – charges Netflix and certain of its top executive officers with violations of the Securities Exchange Act of 1934.

If you suffered significant losses and wish to serve as lead plaintiff of the Netflix class action lawsuit, please provide your information by clicking here.  You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at jsanchez@rgrdlaw.com.  Lead plaintiff motions for the Netflix class action lawsuit must be filed with the court no later than July 5, 2022.

CASE ALLEGATIONS: Netflix primarily operates an entertainment platform that offers TV series, documentaries, feature films, and mobile games across a variety of genres and languages.

The Netflix class action lawsuit alleges that, throughout the Class Period, defendants made false and misleading statements and failed to disclose that: (i) Netflix was exhibiting slower acquisition growth due to, among other things, account sharing by customers and increased competition from other streaming services; (ii) Netflix was experiencing difficulties retaining customers; (iii) as a result, Netflix was losing subscribers on a net basis; (iv) thus, Netflix’s financial results were being adversely affected; and (v) consequently, defendants’ positive statements about Netflix’s business, operations, and prospects were materially false and/or misleading and/or lacked a reasonable basis.

On January 20, 2022, Netflix reported that it “slightly over-forecasted paid net adds in [the fourth quarter of 2021],” adding 8.3 million subscribers compared to the 8.5 million forecast.  Netflix also stated that, despite “healthy” retention and engagement, it only expected to add 2.5 million net subscribers during the first quarter of 2022, below the 4.0 million net adds in the prior year period.  On this news, Netflix’s stock price fell by nearly 22%.

Then, on April 19, 2022, Netflix reported that it lost 200,000 subscribers during the first quarter of 2022, compared to prior guidance expecting Netflix to add 2.5 million net subscribers.  Netflix cited the slowing revenue growth to four factors, including account sharing with an estimated 100 million additional households and competition with other streaming services.  On this news, Netflix’s share price fell by more than 35%, further damaging investors.

THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Netflix common stock or call options, or sellers of put options, during the Class Period to seek appointment as lead plaintiff in the Netflix class action lawsuit.  A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class.  A lead plaintiff acts on behalf of all other class members in directing the Netflix class action lawsuit.  The lead plaintiff can select a law firm of its choice to litigate the Netflix class action lawsuit.  An investor’s ability to share in any potential future recovery of the Netflix class action lawsuit is not dependent upon serving as lead plaintiff.

ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: Robbins Geller Rudman & Dowd LLP is one of the world’s leading complex class action firms representing plaintiffs in securities fraud cases.  The Firm is ranked #1 on the 2021 ISS Securities Class Action Services Top 50 Report for recovering nearly $2 billion for investors last year alone – more than triple the amount recovered by any other plaintiffs’ firm.  With 200 lawyers in 9 offices, Robbins Geller’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig.

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