Shareholders of the Netflix video service filed a lawsuit against the company. They blamed the company and its top management for the streaming giant's failure to notify them in a timely manner of the video streaming service's decline in subscriber numbers, followed by a plunge in share prices. In a lawsuit, they demanded compensation for losses of investors from October 2021 to April 2022
A Texas-based investment fund, on behalf of Netflix shareholders, has filed a lawsuit in San Francisco District Court against the video streaming company. Investors accuse the company of misleading them by not notifying them in a timely manner of the decline in the number of subscribers to the service. In the lawsuit, they demanded compensation for the losses they suffered as a result of the fall in the price of the company's shares from October 19 last year to April 19, 2022, reports Reuters.
The lawsuit was filed in the Northern District of California. It accuses the company and its top executives of failing to disclose in a timely manner that growth in paid subscribers has slowed and their numbers have fallen. The defendants were also required to compensate investors for losses from the decline in Netflix's share price this year. The lawsuit names Netflix co-CEOs Reed Hastings and Ted Sarandos and CFO Spencer Neiman as defendants in the case. Shares of Netflix fell 20% in January after it reported weak subscriber growth. On April 20, the shares of the video service collapsed by more than 35% and closed at $226.19 per share. The fall in April came as a cut after the streaming giant said it lost 200,000 subscribers in the first quarter, while forecasting 2.5 million subscribers. As of April 4, Netflix shares closed at $204 a share. The company attributed the drop in subscribers to inflation, competition from other video streaming services, and the suspension of operations in Russia, where it had 700,000 subscribers. Netflix lost more than $200 billion in market value after reporting its first-ever loss of subscribers in a decade during the announcement of first-quarter results in April, Axios recalled. But we must remember that before this conflict, this service had a fairly high popularity. And it is likely that after the settlement of the conflict, the growth of shares will recover. After the stock fell over 70% from the maximum, this product has a pretty attractive price to buy!!! The entertainment industry is always a promising product! People love bread and spectacle. I think that investing in this product in the long run will bring quite a few profits!!!
A Texas-based investment fund, on behalf of Netflix shareholders, has filed a lawsuit in San Francisco District Court against the video streaming company. Investors accuse the company of misleading them by not notifying them in a timely manner of the decline in the number of subscribers to the service. In the lawsuit, they demanded compensation for the losses they suffered as a result of the fall in the price of the company's shares from October 19 last year to April 19, 2022, reports Reuters.
The lawsuit was filed in the Northern District of California. It accuses the company and its top executives of failing to disclose in a timely manner that growth in paid subscribers has slowed and their numbers have fallen. The defendants were also required to compensate investors for losses from the decline in Netflix's share price this year. The lawsuit names Netflix co-CEOs Reed Hastings and Ted Sarandos and CFO Spencer Neiman as defendants in the case. Shares of Netflix fell 20% in January after it reported weak subscriber growth. On April 20, the shares of the video service collapsed by more than 35% and closed at $226.19 per share. The fall in April came as a cut after the streaming giant said it lost 200,000 subscribers in the first quarter, while forecasting 2.5 million subscribers. As of April 4, Netflix shares closed at $204 a share. The company attributed the drop in subscribers to inflation, competition from other video streaming services, and the suspension of operations in Russia, where it had 700,000 subscribers. Netflix lost more than $200 billion in market value after reporting its first-ever loss of subscribers in a decade during the announcement of first-quarter results in April, Axios recalled. But we must remember that before this conflict, this service had a fairly high popularity. And it is likely that after the settlement of the conflict, the growth of shares will recover. After the stock fell over 70% from the maximum, this product has a pretty attractive price to buy!!! The entertainment industry is always a promising product! People love bread and spectacle. I think that investing in this product in the long run will bring quite a few profits!!!
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.