San Diego, CA -- (SBWIRE) -- 02/01/2012 -- The Shareholders Foundation announces that an investor in NASDAQ:NFLX filed a lawsuit in U.S. District Court for the Northern District of California against Netflix, Inc. over alleged Violations of Federal Securities Laws in connection with its loss of subscribers.
Investors who purchased shares of Netflix, Inc. (Public, NASDAQ:NFLX), including those who purchased NASDAQ: NFLX shares between December 20, 2010 and October 24, 2011, have certain options and there are strict and short deadlines running. Deadline: March 13, 2012. NASDAQ NFLX stockholders should contact Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
According to the complaint the plaintiff alleges on behalf of purchasers of Netflix, Inc. (Public, NASDAQ:NFLX common stock during the period between December 20, 2010 and October 24, 2011 that Netflix, Inc. and certain of its officers and directors violated the Securities Exchange Act of 1934 by issuing allegedly materially false and misleading statements regarding Netflix’ business practices and its contracts with content providers.
On September 15, 2011, Netflix, Inc updated its third quarter 2011 guidance and disclosed that it had lost a million subscribers due to its recently announced price increases becoming effective.
Then, on October 24, 2011, Netflix issued its third quarter 2011 shareholder letter, which reported a net loss of 810,000 U.S. subscribers, translating into a cumulative loss of 5.5 million subscribers. The subsequently filed Form 10-Q revealed that Netflix’s obligations for content over the coming years had increased to $3.5 billion, with $2.8 billion due within three years.
Shares of Netflix, Inc. (NASDAQ: NFLX) declined from as high as almost $300 in July 2011 to slightly over $77 on October 25, 2011.
Those who purchased shares of Netflix, Inc. (Public, NASDAQ:NFLX), have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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