Securities,
Civil Litigation
May 6, 2022
Shareholder sues Netflix after disclosure of subscriber loss
“Clearly the senior executives knew something about their empirical data,” Erwin Shustak, a securities specialist at Shustak Reynolds & Partners, said. “If there was a gap between the time they saw their subscription went down to the day they disclosed the information, how much was that gap? How long can you sit on that information? Where there’s smoke, there’s fire.”
A shareholder filed what is believed to be the first class action against Netflix Inc. since the streaming service disclosed last month that it lost 200,000 subscribers in the first quarter of the year, causing the stock price to plunge 35%.
According to the complaint, filed by Fiyyaz Pirani, the Los Gatos streaming company violated Sections 10(b) and 20(a) of The Exchange Act and Rule 10b-5. Pirani v. Netflix Inc. et al., 22-CV-02672 (N.D...
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