March 17, 2020 - The case was voluntarily dismissed.
July 22, 2019 - An investor in shares of Netflix, Inc. (NASDAQ: NFLX) filed a lawsuit in the U.S. District Court for the Northern District of California over alleged violations of Federal Securities Laws by Netflix, Inc. in connection with certain allegedly false and misleading statements made between April 17, 2019 through July 17, 2019.
On July 17, 2019, Los Gatos, CA based Netflix released a letter to shareholders which revealed that Netflix missed its expected target for number of new subscribers and lost 126,000 subscribers in the United States during the second quarter of 2019. Also on July 17, 2019, Netflix held an earnings call to discuss its financial and operating results for the quarter. During the earnings call, the Company’s Chief Financial Officer attributed the missed subscription target to the “timing of [Netflix’s] content slate” and price increases.
Shares of Netflix, Inc. (NASDAQ: NFLX) declined from $384.76 per share on July 9, 2019 to as low as $306 per share on July 23, 2019.
According to the complaint the plaintiff alleges on behalf of purchasers of Netflix, Inc. (NASDAQ: NFLX) common shares between April 17, 2019 through July 17, 2019
, that the defendants violated Federal Securities Laws.
More specifically, the plaintiff claims that between April 17, 2019 through July 17, 2019, the defendants made false and/or misleading statements and/or failed to disclose that Netflix would not be able to gain its expected target number of new subscribers in the second quarter of 2019, that Netflix would also lose subscribers from the United States in the second quarter of 2019, and that as a result, defendants’ public statements were materially false and misleading at all relevant times.