Grant & Eisenhofer Announces Filing of Securities Class Action Against Netflix in California Federal Court on Behalf of Investors Who Purchased Common Stock Between Jan. 19, 2021-April 19, 2022
May 31 2022 - 7:48PM
Business Wire
Grant & Eisenhofer P.A. filed a securities class action
lawsuit on May 27, 2022 in the U.S. District Court for the Northern
District of California. The lawsuit was filed on behalf of a
proposed class consisting of all investors who purchased Netflix,
Inc. (“Netflix” or the “Company”) (NASDAQ: NFLX) common stock
between January 19, 2021 and April 19, 2022, inclusive (the “Class
Period”). This action extends the Class Period to begin prior to
the October 19, 2021 start date alleged in the initial class action
complaint filed against Netflix and certain of its executives for
certain misconduct (described below) on May 3, 2022, styled as
Pirani v. Netflix, Inc., et al., Case No. 4:22-cv-02672 (N.D.
Cal.).
The action alleges that Netflix and certain of its officers
violated Sections 10(b) and 20(a) of the Securities Exchange Act of
1934, and Rule 10b-5 promulgated thereunder, by falsely
representing that subscriber growth headwinds were primarily caused
by the after-effect of a COVID-related boom, and concealing that
the real culprits were high market penetration and competition. The
truth about Netflix’s growth was partially revealed on January 20,
2022, when the Company announced weak quarterly guidance for the
first quarter of 2022. In response, the Company’s stock price fell
nearly 22% on heavy trading volume to close at $397.50 per share on
January 21, 2022. Then, on April 19, 2022, Netflix announced that
its first quarter 2022 results fell short of its previous guidance,
and revealed that high market penetration and competition were
hampering growth. On that news, the price of Netflix stock fell
another 35% on high trading volume, to close at $226.19 per share
on April 20, 2022.
If you are a member of the class described above, you may move
the Court to serve as lead plaintiff of the class , by no later
than July 5, 2022. A lead plaintiff is a representative party that
acts on behalf of other class members and directs the litigation.
Investors’ ability to share in any recovery is not affected by the
decision whether or not to serve as a lead plaintiff.
The plaintiff in the action is represented by Grant &
Eisenhofer P.A., which has extensive expertise in prosecuting
investor class actions involving financial fraud. Grant &
Eisenhofer represents institutional investors and shareholders
internationally in securities class actions, corporate governance
actions and derivative actions, and has recovered more than $29
billion for its clients over the last 25 years. For more
information about Grant & Eisenhofer visit www.gelaw.com.
If you wish to discuss this action or have any questions
concerning this notice, please contact:
Dan L. Berger, Grant & Eisenhofer: dberger@gelaw.com;
646-722-8500.
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version on businesswire.com: https://www.businesswire.com/news/home/20220527005396/en/
Dan L. Berger Grant & Eisenhofer dberger@gelaw.com
646-722-8500
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