Stranger things, Netflix, the law
Netflix is finding that it doesn’t take long to hack off the money folk. After a long stellar rise, the video streamer just reported a 2.7m gain in subscribers around the world, which was about half of what the company had been projecting – plus there was its first net decline in US subs for eight years.
Cue a lawsuit alleging Netflix violated market regulations with its failure to disclose any information about that worldwide subscriber shortfall. The suit, filed on behalf of a shareholder, says the firm “knew that the public documents and statements issued or disseminated in the name of the company were materially false and misleading.”
The complainant, who clearly believes stock prices should rise, and rise only, is asking for undisclosed damages, interest on damages, legal and other expert fees, plus miscellaneous costs.
Good luck with that. Someone needs to read the Private Securities Litigation Reform Act and stop listening to their lawyer.