PRLog - Jan. 24, 2012 - SAN DIEGO -- The Shareholders Foundation announces that an investor in NASDAQ:NFLX filed a lawsuit in U.S. District Court for the Northern District of California against Netflix, Inc. over alleged Violations of Federal Securities Laws in connection with its loss of subscribers.
If you purchased shares of Netflix, Inc. (Public, NASDAQ:NFLX)
According to the complaint the plaintiff alleges on behalf of purchasers of Netflix, Inc. (Public, NASDAQ:NFLX common stock during the period between December 20, 2010 and October 24, 2011 that Netflix, Inc. and certain of its officers and directors violated the Securities Exchange Act of 1934 by issuing allegedly materially false and misleading statements regarding Netflix’ business practices and its contracts with content providers.
On September 15, 2011, Netflix, Inc updated its third quarter 2011 guidance and revealed that it had lost a million subscribers due to its recently announced price increases becoming effective.
On September 19, 2011, so the lawsuit, Netflix, Inc announced that, in an effort to offset costs and rapidly defecting customers, Netflix, Inc would begin charging separately for its two services and had raised prices as much as 60%.
Then, on October 24, 2011, Netflix issued its third quarter 2011 shareholder letter, which reported a net loss of 810,000 U.S. subscribers, translating into a cumulative loss of 5.5 million subscribers.
For more information go to www.ShareholdersFoundation.com or contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
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The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group. We do research related to shareholder issues and inform investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. At Shareholders Foundation, Inc. we are in contact with a large number of shareholders. We offer help, support, and assistance for every shareholder. We help investors find answers to their questions and equitable solutions to their problems. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.