A shareholder in Netflix has filed a lawsuit against the streaming company in the San Francisco federal court.
According to Reuters, it names co-chief executives Reed Hastings and Ted Sarandos and CFO Spencer Neumann and accuses Netflix of misleading the market about its ability to keep adding subscribers in recent months. The lawsuit, which is seeking damages for investors who traded in Netflix between October 19, 2021 and April 19, 2022, has been filed by an unnamed Texas-based investment trust.
Netflix shares have fallen sharply this year, most recently by 35% to $226.19 on April 20 following the release of the company’s first quarter results. As of midday on Wednesday, May 4, they stood at $199.87.
As previously reported by Broadband TV News, Netflix lost customers for the first time in 10 years in the first quarter and is now looking into the possibility of introducing advertising in its low-end packages.
