Shareholders are suing Netflix, alleging that the streaming company deceived investors about falling subscriber growth. During Netflix's Q1 earnings announcement for 2022, the company revealed its first negative subscriber total in ten years. According to reports, the streaming service lost 200,000 users, bringing its total to 221.64 million from 221.84 million. In addition, Netflix anticipates a severe loss of 2 million customers in the second quarter.
Following Netflix's latest announcement, the streaming service's stock fell, losing 35% of its value, costing the firm and its investors a significant amount of money. Netflix's current problems are a far cry from where they were even a year ago. In the first quarter of 2021, the corporation reportedly added roughly four million new users. Prior to it, Netflix had been growing steadily for several years, adding more and more customers each year. Netflix now appears to be facing even greater difficulties.
Netflix is being sued, according to Variety, for allegedly misleading investors about slowing subscriber growth over a six-month period, resulting in a significant drop in stock price. Netflix allegedly broke securities laws by making "materially false and/or misleading statements" and failing to disclose "material adverse facts regarding the company's business, operations, and prospects," according to a lawsuit filed tuesday in San Francisco. The case was filed on behalf of stockholders who owned Netflix stock between october 19, 2021 and april 19, 2022, however it does not identify a specific monetary amount of damages.
Following Netflix's latest announcement, the streaming service's stock fell, losing 35% of its value, costing the firm and its investors a significant amount of money. Netflix's current problems are a far cry from where they were even a year ago. In the first quarter of 2021, the corporation reportedly added roughly four million new users. Prior to it, Netflix had been growing steadily for several years, adding more and more customers each year. Netflix now appears to be facing even greater difficulties.
Netflix is being sued, according to Variety, for allegedly misleading investors about slowing subscriber growth over a six-month period, resulting in a significant drop in stock price. Netflix allegedly broke securities laws by making "materially false and/or misleading statements" and failing to disclose "material adverse facts regarding the company's business, operations, and prospects," according to a lawsuit filed tuesday in San Francisco. The case was filed on behalf of stockholders who owned Netflix stock between october 19, 2021 and april 19, 2022, however it does not identify a specific monetary amount of damages.
