First-Filed Class Action Lawsuit Against Netflix, Inc. After Projected Earnings Sliced in Half
Kahn Swick & Foti, LLC and KSF partner, the former Attorney General of Louisiana, Charles C. Foti, Jr., recently reminded investors that they have until May 1st 2017 to file lead plaintiff applications in a securities class action lawsuit against Netflix, Inc., if they purchased the Company’s securities between July 22nd 2014 and October 15th 2014, inclusive (the “Class Period”). The action is pending in United States District Court for the Northern District of California.
Netflix and certain of its executives are charged with failing to disclose material information during the Class Period, violating federal securities laws.
In May 2014, Netflix made a price increase for monthly streaming subscriptions. On July 21st 2014, Netflix representatives told the market that the price increase had a “minimal” and “nominal” impact on subscriber growth, further stating that any adverse effect on revenue was “background noise” which had “no noticeable effect in the business.”
Then, on October 15th 2014, Netflix revealed that the impact on earnings was hugely negative, including that the subscriber growth numbers were so low that Netflix slashed its projected earnings by almost fifty percent.
On this news, the price of Netflix’s shares plummeted. This is not the first time Netflix has been sued, but the first class action. The media streaming giant was also sued a huge $1.5 billion last year in a dispute over breach of contract and libel by Relativity Media. Netflix, among others, has also been sued for its download content feature, by Blackbird Technologies, a patent trolling/squatting firm, over the patent governing downloadable video content.
If you purchased securities of Netflix and would like to discuss your legal rights and how this case might affect you and your right to recover for your economic loss, you may, without obligation or cost to you, call toll-free at 1-877-515-1850 or email KSF Managing Partner Lewis Kahn (lewis.kahn@ksfcounsel.com). If you wish to serve as a lead plaintiff in this class action, you must petition the Court by May 1st 2017.
(Source: Kahn Swick & Foti, LLC)
