San Diego, CA -- (SBWIRE) -- 12/12/2012 -- An investigation on behalf of investors in shares of Netflix, Inc. (NASDAQ:NFLX) was announced concerning whether certain Netflix officers and directors possibly breached their fiduciary duties in connection with certain statements.
Investors who purchased shares of Netflix, Inc. (NASDAQ:NFLX), have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
The investigation by a law firm concerns whether certain Netflix, Inc. officers and directors breached their fiduciary duties and caused damage to the company and its shareholders by, among other things, failing to implement adequate internal controls.
Netflix, Inc. (NASDAQ:NFLX) reported that its annual Revenue rose from over $1.36 billion in 2008 to over $3.2 billion in 2011 and its Net Income increased over the same time periods from $83.03 million to $226.13 million.
Shares of Netflix, Inc. (NASDAQ:NFLX) grew from as low as slightly below $19 per share in October 2008 to as high as $295.14 per share in July 2011.
Since then NASDAQ:NFLX shares lost significant value.
On December 6, 2012, Netflix, Inc. disclosed in a filing with the Securities and Exchange Commission (“SEC”) that on December 5, 2012, Netflix, Inc. and its Chief Executive Officer Reed Hastings each received a “Wells Notice” from the Staff of the Securities and Exchange Commission indicating its intent to recommend to the SEC that it institute a cease and desist proceeding and/or bring a civil injunctive action against Netflix and Mr. Hastings for violations of Regulation Fair Disclosure, Section 13(a) of the Securities Exchange Act and Rules 13a-11 and 13a-15 thereunder.
The CEO wrote in the filing that the SEC's allegation stems from a posting he made on Facebook in early July, in which he told over 200,000 people who subscribe to his posts on Facebook that Netflix members have viewed more than 1 billion hours of programming on the service in June.
He said that the posting to over 200,000 people was very public and also was not material to investors and but had already been disclosed on a public blog.
NASDAQ:NFLX shares closed on Dec. 11, 2012 at $86.08 per share, which is significantly below its current 52 week High of $133.43 per share.
Those who purchased shares of Netflix, Inc. (NASDAQ:NFLX), have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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