In times when Netflix is trying to focus on growth and avoid further subscription cancellations – the streamer now has one extra problem on its plate
Netflix shareholders are taking the streaming giant to court.
Investors are accusing the streaming entertainment company of misleading the market about its ability to keep adding subscribers in recent months.
A lawsuit has now officially been filed in San Francisco’s federal court.
It claims top executives at Netflix failed to disclose that its growth was slowing amid increased competition.
The lawsuit is seeking damages for the declines in Netflix’s share price this year, after the company missed its subscriber growth estimates.
April 20 was dooms-day for the streaming giant after it revealed it had lost 200,000 paying subscribers in the first quarter of 2022.
