Investors who purchased shares of Netflix, Inc. (NASDAQ:NFLX)
According to the complaint filed in the U.S. District Court for the Northern District of California the plaintiff alleges on behalf of purchasers of Netflix, Inc. (NASDAQ:NFLX)
On July 25, 2011, after the market closed, Netflix, Inc. (NASDAQ: NFLX) has released its second-quarter 2011 financial results. Netflix’ third-quarter sales and profit forecast missed analysts’ estimates and Netflix Inc. disclosed that a price change would cause a negative impact in new customer signups.
Then on September 15, 2011, Netflix, Inc updated its third quarter 2011 guidance and announced 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. 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.
Shares of Netflix, Inc. (NASDAQ: NFLX) declined from as high as almost $300 in July 2011 to slightly over $77 on October 25, 2011.
Those who purchased shares of Netflix, Inc. (NASDAQ:NFLX)
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