Netflix is sued by its shareholders

They have been a few weeks quite complicated for Netflix . After making known the loss of users, the company revealed a series of measures to counteract this, which caused a lot of complaints by the subscribers. Now, today it has been revealed that Netflix faces a lawsuit from its shareholders.

Today it has been announced that the law firm of Glancy Prégay & Murray LLP has announced a lawsuit in the United States District Court for the Northern District of California, claiming that Netflix “made materially false and// or misleading ”and, as a result, cost investors who had shares from October 2021 to April 2022 enough money.

According to the Financial Board, due to the first quarter of the year, Netflix revealed that their expectations of new users were not only met, but were well above what we actually saw at the end of 2021 and early 2022. * At the end of last year there was a prognosis of 200 thousand users, but at the beginning of the year 200,000 subscribers *, this against a forecast of 2.5 million additions lost. This is what is alleged:

“[Netflix] made materially false and/or deceptive statements, and did not reveal adverse material facts on the business, operations and perspectives of the company. The positive statements about the company's business, operations and prospects were materially false and/or deceitful and/or lacked a reasonable basis.

[Demand seeks investors who could have purchased or acquired common shares or purchase options for Netflix, Inc., or sales options, between October 19, 2021 and April 19, 2022, and are looking for compensatory damage (…) For all damages suffered as a result of the bad actions of the defendants. ”

At the moment there is no official response from Netflix. However, This demand adds to the already complicated situation that the company lives , and in the event that this legal process manages to evolve, this could cost a lot of money to the company that desperately needs funds to cover your high expenses.

In related issues, new seasons of sailor Moon are on their way to Netflix. Similarly, here you can see the new look at the next season of stranger Things.

Editor note :

As always, shareholders only like to see the numbers up and up, and at the slightest fall, the demands are not waiting. Although it is true that Netflix estimates were somewhat exaggerated, situations such as war between Ukraine and Russia, something that has cost thousands of users to the platform, and the destruction of the pandemic bubble, were not something that could easily be have planned.