Netflix shareholders are suing the streaming giant over the loss of subscribers, Rogue Rocket reports.
The class-action suit comes two weeks after Netflix disclosed a 200,000 dip in subscribers in the first quarter. This was Netflix’s first drop in subscribers in over a decade. Netflix’s stock dropped over 35% in one days in reaction to the news.
The suit claims: “[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,” the lawsuit states. “Specifically, Defendants failed to disclose to investors that Netflix was exhibiting slower acquisition growth due to, among other things, account sharing by customers and increased competition from other streaming services.”
According to Axios, shareholders claim they have suffered significant losses and damages.”
Deadline has the entire suit published. You can read it here!
