An investigation on behalf of current long term investors in Netflix, Inc. (NASDAQ:NFLX) shares over possible breaches of fiduciary duty by certain officers and directors was announced and NASDAQ:NFLX stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 02/13/2012 -- The Shareholders Foundation announces that certain directors and officers of Netflix are under the investigation for current long term investors in Netflix, Inc. (NASDAQ:NFLX) shares over possible breaches of fiduciary duties.
Investors who are current long term investors in Netflix, Inc. (NASDAQ:NFLX) shares, 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 for current long term investors in Netflix, Inc. (NASDAQ:NFLX) stocks follows a lawsuit filed earlier by shareholders who purchased NASDAQ:NFLX shares only between December 20, 2010 and October 24, 2011. The investigation on behalf of current long term investors in Netflix, Inc. (NASDAQ:NFLX) stocks, including also those who purchased within or prior to the above stated time frame, concerns whether certain Netflix officers and directors are liable in connection with the allegations made in that lawsuit.
According to that complaint filed in the U.S. District Court for the Northern District of California the plaintiff alleges that Netflix, Inc. 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 July 25, 2011, after the market closed, Netflix, Inc. (NASDAQ: NFLX) has released its second-quarter 2011 financial results. Netflix’ third-quarter sales and profit forecast missed analysts’ estimates and Netflix Inc. disclosed that a price change would cause a negative impact in new customer signups.
Among other things, Netflix, Inc said the global profit for the third quarter is expected to be $0.72 per share to $1.07 per share. However, analysts’ projected a profit of $1.11 per share.
Then on September 15, 2011, Netflix, Inc updated its third quarter 2011 guidance and revealed that it had lost a million subscribers due to its recently announced price increases becoming effective.
On September 19, 2011, so the lawsuit, Netflix, Inc announced that, in an effort to offset costs and rapidly defecting customers, Netflix, Inc would begin charging separately for its two services and had raised prices as much as 60%.
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 are current long term investors in Netflix, Inc. (NASDAQ:NFLX) shares, have certain options and should contact the Shareholders Foundation.
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