BERKELEY, Calif., Feb. 6, 2012 /PRNewswire/ -- Hagens Berman reminds investors that 36 days remain before the lead plaintiff deadline in a securities class-action lawsuit filed against Netflix (NASDAQ: NFLX).
The deadline to move the court for lead plaintiff is March 13, 2012.
The lawsuit, filed in the United States District Court for the Northern District of California on Jan. 13, 2012, claims that Netflix violated federal securities laws by failing to announce that contracts with content providers would either expire or be very expensive to renew. The suit also alleges that Netflix executives sold more than $90 million in company stock during the class period.Investors who purchased or otherwise acquired shares of Netflix common stock between Dec. 20, 2010, and Oct. 24, 2011 (the "class period"), and have lost more than $500,000 are encouraged to contact Hagens Berman Partner Reed R. Kathrein at (510) 725-3000. Mr. Kathrein is leading Hagens Berman's investigation. Investors can also email Mr. Kathrein at NFLX@hbsslaw.com or can contact the firm online by visiting www.hbsslaw.com/NFLX. On July 12, 2011, Netflix announced that it was raising prices for some subscribers, and on July 13, 2011, the company announced a new multi-year agreement with NBC Universal. Following this announcement, Netflix stock closed at $298.73 per share. A few months later, on Sept. 1, 2011, Starz announced that the company's contract with Netflix would expire, and Netflix would be forced to remove content from its service. On Sept. 15, 2011, the company stated that it was updating its third quarter 2011 guidance, disclosing that it had lost a million subscribers following the price increases. On this news, Netflix stock price declined in value by almost 19 percent, closing at less than $170.00 per share. Then on Oct. 24, 2011, the company reported a net loss of more than 800,000 subscribers. Netflix stock dropped again, closing at $80.86 on Oct. 27, 2011. According to the class-action complaint, Netflix executives sold over $90 million worth of the company's stock during the class period. The lawsuit alleges that CEO Reed Hastings sold 190,000 shares for $43.2 million. The deadline to move the court for lead plaintiff status is March 13, 2012. Whistleblowers Persons with knowledge that may help the investigation are encouraged to contact the firm. The SEC recently finalized new rules as part of its implementation of the whistleblower provisions in the Dodd-Frank Wall Street Reform Bill. The new rules protect whistleblowers from employer retaliation and allow the SEC to reward those who provide information leading to a successful enforcement with up to 30 percent of the recovery.