A Netflix shareholder has sued the streamer for violating securities law after slowing subscriber growth led to a sharp decline in the company’s stock price.The suit, filed U.S.
District Court in the Northern District of California by Imperium Irrevocable Trust, seeks class action status “on behalf of all others similarly situated” who lost money – specifically whoever owned Netflix shares between Oct.
19, 2021, and April 19, 2022. It named Netflix, co-CEOs Reed Hastings and Ted Sarandos and CFO Spencer Neuman as defendants. (See full lawsuit below.)Shareholder suits are common and face a high bar.
But this one is the latest headache for the streaming leader, whose weaker-than-expected subscriber numbers recently have thrown not just Netflix but the entire DTC sector under a critical Wall Street glare.
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