Netflix Investor News: Robbins LLP is Investigating Netflix, Inc. (NLFX) on Behalf of Shareholders
Shareholder rights law firm Robbins LLP is investigating Netflix, Inc. (NASDAQ: NFLX) and its officers and directors to determine whether they breached their fiduciary duties and violated securities laws by failing to disclose slower acquisition growth and difficulties retaining customers. Netflix operates an entertainment platform.
If you would like more information about our investigation of Netflix, Inc.'s misconduct, click here.
What is this Case About: According to a complaint filed against Netflix, on January 20, 2022, Netflix reported that it "slightly over-forecasted paid net adds in Q4," adding 8.3 million subscribers compared to the 8.5 million forecast. The Company also stated that, despite "healthy" retention and engagement, it only expected to add 2.5 million net subscribers during first quarter 022, below the 4.0 million net adds in the prior year period. On this news, the Company's stock price fell $110.75, or 21.7%, to close at $397.50 per share on January 21, 2022.
Then, on April 19, 2022, Netflix reported that it lost 200,000 subscribers during the first quarter of 2022, compared to prior guidance expecting the Company to add 2.5 million net subscribers. The Company cited the slowing revenue growth to four factors, including account sharing with an estimated 100 million additional households and competition with other streaming services. On this news, the Company's share price fell $122.42, or over 35%, to close at $226.19 per share on April 20, 2022.
Next Steps: If you acquired shares or call options of Netflix (NFLX), or sold put options, between October 19, 2021 and April 19, 2022, you have legal options. Contact Robbins LLP for more information.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
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About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. To be notified if a class action against Netflix, Inc. settles or to receive free alerts when corporate executives engage in wrongdoing, sign up for Stock Watch today.
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