Netflix, Inc. (NASDAQ:NFLX) Investor Files Lawsuit Against Directors over Alleged Wrongdoing
A current investor in NASDAQ:NFLX shares filed a lawsuit against directors of Netflix, Inc. over alleged breaches of fiduciary duties and other NADSAQ:NFLX stockholders are encouraged to contact the Shareholders Foundation.
San Diego, CA -- (SBWire) -- 02/21/2012 --An investor in shares of Netflix, Inc. (NASDAQ:NFLX) filed a lawsuit in Federal Court against directors of Netflix over their decision to increase subscription fees which resulted in 800,000 lost subscribers. The plaintiff alleges that the directors breached their fiduciary duties, abused their control, and wasted millions of dollars.
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 lawsuit by the current investor against directors over alleged breaches of fiduciary duties follows an earlier lawsuit by investors against Netflix itself over alleged Securities Laws Violations. The lawsuit against Netflix itself was filed only for investors who purchased NFLX shares between December 20, 2010 and October 24, 201, while the lawsuit against directors was filed on behalf of all current NFLX stockholders.
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.
NASDAQ: NFLX shares declined from as high as almost $300 in July 2011 to slightly over $77 on October 25, 2011 and continued to decline to as low as under $64 in November 2011. Since then NASDAQ:NFLX shares have recovered some value and closed on February 16, 2012 at $121.91 per share, still less than half the value from July 2011.
Those who are current long term investors in Netflix, Inc. (NASDAQ:NFLX) shares, have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego
Media Relations Contact
Media and Client Relations Manager
Shareholders Foundation, Inc.
View this press release online at: http://rwire.com/128092