Netflix shareholders sue over disclosures of subscriber decline
Mario Tama/Getty Images News


Netflix's (NASDAQ:NFLX) unusual first-quarter subscriber loss led to a tanking in the stock; now comes the shareholder lawsuit over the drop and how the company informed investors about its struggles.
A Texas-based investment trust has sued in California, accusing Netflix (NFLX) of failing to disclose that growth was slowing and that the company was losing net subscribers - and is seeking damages over the drop in Netflix's (NFLX) share price.

Netflix stock (NFLX) fell 2%, Wednesday, and is down 67.4% year-to-date. Its shares have plunged by 44% since the company's disappointing April 19 earnings report.
The suit names co-CEOs Reed Hastings and Ted Sarandos along with Chief Financial Officer Spencer Neumann, and is seeking damages for investors who traded the stock between Oct. 19, 2021, and April 19, 2022.
Despite Netflix's (NFLX) recent subscriber debacle, the company's programming remains popular, with its hit series Bridgerton dominating the latest streaming viewership numbers from Nielsen (NLSN).