Investors who are current long term investors in Netflix, Inc. (NASDAQ:NFLX)
The lawsuit by the current investor against directors over alleged breaches of fiduciary duties follows an earlier lawsuit by investors against Netflix itself over alleged Securities Laws Violations. The lawsuit against Netflix itself was filed only for investors who purchased NFLX shares between December 20, 2010 and October 24, 201, while the lawsuit against directors was filed on behalf of all current NFLX stockholders.
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.
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. The subsequently filed Form 10-Q revealed that Netflix’s obligations for content over the coming years had increased to $3.5 billion, with $2.8 billion due within three years.
NASDAQ: NFLX shares declined from as high as almost $300 in July 2011 to slightly over $77 on October 25, 2011 and continued to decline to as low as under $64 in November 2011. Since then NASDAQ:NFLX shares have recovered some value and closed on February 16, 2012 at $121.91 per share, still less than half the value from July 2011.
Those who are current long term investors in Netflix, Inc. (NASDAQ:NFLX)
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