Daily Management Review

Shareholders sue Netflix


Netflix shareholders filed a class action lawsuit against the company on Wednesday, accusing its management of providing false information about the reality, Axios writes.

Donald Trung Quoc Don
Donald Trung Quoc Don
According to it, the lawsuit, filed in a San Francisco, California court, alleges that Netflix "concealed slower subscriber growth from shareholders, including due to customer account sharing and increased competition from other streaming services."

In addition, the lawsuit alleges that the company concealed from shareholders "difficulties in retaining users", as a result of which Netflix is "losing subscribers". Shareholders claim to have suffered "substantial losses and damages" due to concealment of this information.

The company declined to comment to Axios on the reports.

In late April, Netflix released its first-quarter report, in which it said that the total number of paying subscribers, including newcomers, had dropped by 200,000 worldwide.

source: axios.com