Netflix Sued in a US Court in California

Netflix Inc has been accused of misleading the market about its ability to add subscribers in recent months after a shareholder proceeding in a US court in California. A lawsuit filed in a federal court in San Francisco seeks damages for Netflix's fall in stock prices this year after the company missed its subscriber growth forecast.

A proceeding filed by a Texas-based investment trust reveals that California-based Netflix Los Gatos and its executives are losing subscribers on a net basis as growth slows in the face of intensifying competition. He accused him of not revealing it.

Netflix shares dropped 20% in January. Its shares then plunged more than 35% on April 20 after it reported a loss of 200,000 subscribers in its first quarter. It attributed the quarterly decline to inflation, competition from other streaming services, and its suspension of service in Russia after Russia’s invasion of Ukraine. 

The lawsuit includes Co-Chief Executives of Netflix Reed Hastings and Ted Sarandos and Chief Financial Officer Spenser Neumann. It seeks damages for investors who traded Netflix shares between Oct 19 2021 and April 19, 2022.