It’s been nearly four weeks for Netflix since the streaming service’s most recent quarterly meeting brought humongous results about their growth prospects (they were in the negative), causing their stock price to drop significantly. Now another headache has appeared before the company as a class action lawsuit has been filed against them. The law office of Glancey Pronghe & Murray LLP has announced a lawsuit in the United States District Court for the Northern District of California, alleging that Netflix “made materially false and/or misleading statements” and resulted in October From this came the cost of investors owning the shares. There is a lot of money from 2021 to April 2022.
A press release from the firm referred to Netflix’s most recent quarterly meetings, held in January 2022 and April 2022, when the company first revealed that they had “slightly higher estimated payouts for Q4 2021 as well as Q1 2022″. Pure addition”. At the end of last year Netflix fell short of its subscriber forecast by a margin of just 200k users, but they netted -200k users against a forecast of 2.5 million additional in early 2022 (though a negative amount of users paid for the service). was due to close) in Russia, resulting in the loss of 700k paid customers. When this news became public it resulted in a 21% drop in Netflix’s share price from $348.61 to $226.19.
The crux of the lawsuit is alleging that Netflix “made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations and prospects,” specifically forecasting. With respect to slow growth. It adds that “positive statements about (Netflix) Company’s business, operations and prospects were materially false and/or misleading and/or lacking a reasonable basis,” noting that they “demonstrated slow acquisition growth”. How were they doing and “retaining customers who were experiencing difficulty.”
The suit is looking for investors who “bought or otherwise acquired Netflix, Inc. common stock or call options, or sold put options, between October 19, 2021 and April 19, 2022,” and “compensated losses . .. is asking for. for all damages resulting from the defendant’s wrongdoings, for the amount to be proved at trial, including interest thereon.” See back here for more details on this trial, which of course Will be slow and just another headache for the streaming service, as we learn more about it.
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