Netflix Hit With Class-Action Lawsuit by Disgruntled Investors

Netflix was recently slapped with a class-action lawsuit from disgruntled investors who claim that the company withheld information before the company’s stock-price drop that happened over last summer and fall. The lawsuit was filed in the U.S. District Court of Northern California by the City of Royal Oak Retirement System, on behalf of all plaintiffs similarly situated.

Recommended Videos

The law firm that expedited the suit, Robbins, Geller, Rudman & Dowd LLP, specializes in class-actions complaints. The claims that Netflix did not reveal to its investors that it some of its contracts to stream content — Netflix’s current bread and butter — would need to be renegotiating at a much higher price. The case names Netflix CEO Reed Hastings, CMO David Wells, CMO Leslie Kilgore, chief content officer Ted Sarandos, and chief product officer Neil Hunt as defendants.

Last summer, the day before Netflix split its streaming and DVD-by-mail subscriptions into two separate fees and also raised the price of some of its subscription fees, its stock was trading on the NASDAQ at a $291.27 per share; comparatively, as of last Friday after the market closed, Netflix stock was trading at $94.79 a share — certainly a steep decrease.

As of this time, Netflix has not commented on the suit.

(via paidContent)

Relevant to your interests


The Mary Sue is supported by our audience. When you purchase through links on our site, we may earn a small affiliate commission. Learn more
related content
Read Article ‘Mamma Mia!’ Star Sara Poyzer Says a BBC Production Replaced Her With AI
Sara Poyzer performs at the Magic at the Musicals event in 2019
Read Article In Moment of Unbelievable Irony, Midjourney Accuses Stability AI of Image Theft
Spider-Man pointing at another Spider-Man, who is pointing back.
Read Article Elon Musk May Be the Lesser of Two Evils in This Legal Battle With OpenAI
Elon Musk at the 2022 Met Gala
Read Article A.I. Scammers Are Impersonating Real Authors to Sell Fake Books
A robotic hand holds a pencil.
Read Article Sexist Trolls Drive Away Twitch’s Top Female Streamer After 10 Years
Imane "Pokimane" Anys at the 2023 Green Carpet Fashion Awards
Related Content
Read Article ‘Mamma Mia!’ Star Sara Poyzer Says a BBC Production Replaced Her With AI
Sara Poyzer performs at the Magic at the Musicals event in 2019
Read Article In Moment of Unbelievable Irony, Midjourney Accuses Stability AI of Image Theft
Spider-Man pointing at another Spider-Man, who is pointing back.
Read Article Elon Musk May Be the Lesser of Two Evils in This Legal Battle With OpenAI
Elon Musk at the 2022 Met Gala
Read Article A.I. Scammers Are Impersonating Real Authors to Sell Fake Books
A robotic hand holds a pencil.
Read Article Sexist Trolls Drive Away Twitch’s Top Female Streamer After 10 Years
Imane "Pokimane" Anys at the 2023 Green Carpet Fashion Awards