A shareholder sues Netflix for losing users
Netflix lost subscribers for the first time in its history!
On personal initiative, in the context of a growing economic boom, the honeymoon between Netflix and its investors may be coming to an end. a shareholder who unleashed all his anger through the courts before the stock price plunged.
Shareholder maintains this company didn’t warn investors early enough, about his desperate struggle to retain subscribers. A recent earnings report confirms the 200,000 subscriber leak that triggered it. A spiral drop in shares up to 35%The news was barely known.
Plaintiff is based on the alleged Securities Law Violations, it’s about the decrease in the number of subscribers to the application, and then the decrease in the price of paper. He specifically blames co-CEOs Reed Hastings and Ted Sarandos and CFO Spencer Neumam.
The lawsuit was filed by Imperium IrrevocableTrust in the United States District Court of North Carolina. class action lawsuitwell Anyone with a Netflix stake between October 19, 2021 and April 19, 2022 can participate.
However, according to the estimation of Hollywood-based entertainment establishment Deadline, In order for such lawsuits to proceed, it must meet a large list of plaintiffs.
Since the subscriber is empty, cuts shows to cut service costsfor the time being, it did not leave a trace in the decline in values.
The accuser, during the so-called “class period”, defendants made materially false or misleading statements and did not disclose material negative facts about the business, operations and prospects of the company. They accuse him Failing to inform investors that Netflix is exhibiting slower acquisition growthdue to account sharing by customers and increased competition from other streaming services.
The offer the company has experienced it was having trouble retaining customers and was clearly losing subscribers. As a result, the financial situation was adversely affected. In addition, the defendants’ positive statements about Netflix’s business, operations and prospects were materially false or misleading and lacked any reasonable basis.
Meanwhile, the company takes care to save as much money as possible and an alarming percentage claim to share passwords with family members and not pay for their own subscriptions.
Source: i Padizate
I am Bret Jackson, a professional journalist and author for Gadget Onus, where I specialize in writing about the gaming industry. With over 6 years of experience in my field, I have built up an extensive portfolio that ranges from reviews to interviews with top figures within the industry. My work has been featured on various news sites, providing readers with insightful analysis regarding the current state of gaming culture.