A lawsuit was filed on behalf of investors in Netflix, Inc. (NASDAQ:NFLX) shares over alleged securities laws violations and NASDAQ:NFLX investors should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 03/06/2017 -- An investor, who purchased shares of Netflix, Inc. (NASDAQ:NFLX), filed a lawsuit in California over alleged violations of Federal Securities Laws by Netflix, Inc. in connection with certain allegedly false and misleading statements.
Investors who purchased shares of Netflix, Inc. (NASDAQ:NFLX) have certain options and for certain investors are short and strict deadlines running. Deadline: May 1, 2017. NASDAQ:NFLX investors should contact the Shareholders Foundation at email@example.com or call 858-779-1554.
The plaintiff alleges on behalf of purchasers of Netflix, Inc. (NASDAQ:NFLX) common shares between July 22, 2014 and October 15, 2014, that the defendants violated Federal Securities Laws. The allegations surround Netflix, Inc's May 2014 price increase for monthly streaming subscriptions, and the Company's failure to inform investors that – consistent with the Company's prior experiences – the price increase could have a big, negative impact on subscriber growth. The plaintiff says that on July 21, 2014 Netflix, Inc 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."
However, the plaintiff says that less than three months later, on October 15, 2014, and contrary to its earlier statements dismissing the "minimal" adverse impact, Netflix, Inc revealed that the impact on earnings was hugely negative.
The plaintiff says that the subscriber growth numbers were so low that Netflix, Inc slashed its projected earnings by almost fifty percent.
In a letter to shareholders dated October 15, 2014, Netflix, Inc stated, "[Y]ear on year net additions in the US were down (1.3 million in Q3 2013 to 1 million in Q3 2014). As best we can tell, the primary cause is the slightly higher prices we now have compared to a year ago. Slightly higher prices result in slightly less growth, other things being equal, and this is manifested more clearly in higher adoption markets such as the US." Shares of Netflix, Inc. (NASDAQ:NFLX) declined by more than 19%, falling from a closing price of $448.59 per share on October 15, 2014 to a close of $361.70 per share on October 16, 2014.
On January 18, 2017, Netflix, Inc. reported its fourth quarter and full year 2016 financial results. Netflix, Inc. reported that its annual Total Revenue rose from over $5.5 billion in 2014 to over $8.83 billion in 2016 and that its Net Income declined from $266.80 million in 2014 to $186.68 million in 2016. Shares of Netflix, Inc. (NASDAQ:NFLX) grew from $82.79 per share in February 2016 to as high as $145.95 per share on February 13, 2017
On March 1, 2017, NASDAQ:NFLX shares closed at $142.10 per share.
Those who purchased shares of Netflix, Inc. have certain options and should contact the Shareholders Foundation.
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