Grant & Eisenhofer P.A. filed a securities class action lawsuit on May 27, 2022 in the U.S. District Court for the Northern District of California. The lawsuit was filed on behalf of a proposed class consisting of all investors who purchased Netflix, Inc. (“Netflix” or the “Company”) (NASDAQ: NFLX) common stock between January 19, 2021 and April 19, 2022, inclusive (the “Class Period”). This action extends the Class Period to begin prior to the October 19, 2021 start date alleged in the initial class action complaint filed against Netflix and certain of its executives for certain misconduct (described below) on May 3, 2022, styled as Pirani v. Netflix, Inc., et al., Case No. 4:22-cv-02672 (N.D. Cal.).
The action alleges that Netflix and certain of its officers violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by falsely representing that subscriber growth headwinds were primarily caused by the after-effect of a COVID-related boom, and concealing that the real culprits were high market penetration and competition. The truth about Netflix’s growth was partially revealed on January 20, 2022, when the Company announced weak quarterly guidance for the first quarter of 2022. In response, the Company’s stock price fell nearly 22% on heavy trading volume to close at $397.50 per share on January 21, 2022. Then, on April 19, 2022, Netflix announced that its first quarter 2022 results fell short of its previous guidance, and revealed that high market penetration and competition were hampering growth. On that news, the price of Netflix stock fell another 35% on high trading volume, to close at $226.19 per share on April 20, 2022.
If you are a member of the class described above, you may move the Court to serve as lead plaintiff of the class , by no later than July 5, 2022. A lead plaintiff is a representative party that acts on behalf of other class members and directs the litigation. Investors’ ability to share in any recovery is not affected by the decision whether or not to serve as a lead plaintiff.
The plaintiff in the action is represented by Grant & Eisenhofer P.A., which has extensive expertise in prosecuting investor class actions involving financial fraud. Grant & Eisenhofer represents institutional investors and shareholders internationally in securities class actions, corporate governance actions and derivative actions, and has recovered more than $29 billion for its clients over the last 25 years. For more information about Grant & Eisenhofer visit www.gelaw.com.
If you wish to discuss this action or have any questions concerning this notice, please contact:
Dan L. Berger, Grant & Eisenhofer: dberger@gelaw.com; 646-722-8500.
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