NETFLIX SUED BY SHAREHOLDERS FOR PROVIDING

FALSE INFORMATION TO INVESTORS

A few months ago, to be more specific on April 20th, Netflix’s

investors abandoned the company in mass making the stock
market witness a huge drop in the Netflix’s stock Price.
The Price decreased about 35% from 700 usd to 400 usd
generating the value of Netflix lose around 56 billion dollars
overnight. By the end of April 2022 Netflix’s price dropped about
70% in the stock market. This obviously generated tremendous
losses to its investors and shareholders who claimed that
Netflix’s management misled them on the financial outlook of
the company.

How did this happen?

Netflix is being sued by its investors, the lawsuit accuses Netflix
and its top executives of failing to disclose the company’s slowed
growth and they are seeking damages based on the company's
share price dip after missing its growth estimate.

------ Shareholders are alleging Netflix painted a much more optimistic picture
intentionally misleading them on the company’s positioning in the market. The
company apparently did not disclose material adverse facts about the business,
operations and prospects. In other words, they didn’t mention that they were
expecting to lose subscribers.

What is going to happen?

This is a very complex case that is going to be addressed in court in the next
months. According to the investors, Netflix made “false statements of material
facts and/or failed to state material facts necessary so that the statements
made about Netflix and its business operations and future prospects, in light of
the circumstances in which they were made, are not misleading.
Netflix is evaluating some options to cushion their billionaires losses such as
cheaper subscription plans with advertisements, an idea that has been criticized
by the public since its main feature is the access to content without ads.