Cohen Milstein Sellers & Toll PLLC is conducting an investigation to determine whether Netflix, Inc. (“Netflix” or the “Company”) and certain of its officers and directors made false and misleading statements and/or omissions in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
A class action lawsuit was filed in the U.S. District Court for the Northern District of California by another law firm on behalf of purchasers of the common stock of Netflix, Inc. (NASDAQ: NFLX) between July 3, 2012 and July 24, 2012, inclusive (the “Class Period”).
On July 3, 2012, Netflix’s CEO made a Facebook post concerning volume usage of the Company’s video streaming service. The complaint alleges this statement misled investors by “affirming” his April 23, 2012 statements that Netflix “ was continuing to execute on all of the key dimensions” and “ everything was consistent with what we’d been hoping for,” and led the market to believe that the Company was on target to achieve its previously stated target of 7 million net additional domestic subscribers in 2012.
On July 24, 2012, Netflix released second quarter 2012 results which reported lower than expected domestic subscriber growth. Specifically, Netflix reported 23.9 million domestic streaming subscribers versus analysts’ expectations of 24.3 million. Netflix added 530,000 domestic streaming subscribers in the second quarter, which was below what analysts were expecting in light of the CEO’s July 3 comment. The price of Netflix shares fell from $80.39 to $60.28 on July 25.Cohen Milstein encourages all investors who purchased Netflix common stock between July 3, 2012 and July 24, 2012, or former employees with information concerning this matter, to contact the firm. If you are a Netflix shareholder and would like to discuss your right to recover for your economic loss, you may, without any cost or obligation, call Cohen Milstein’s Managing Partner, Steven J. Toll at (888) 240-0775 or (202) 408-4600, or email him at firstname.lastname@example.org. If you wish to serve as lead plaintiff, you must move the Court no later than April 22, 2013 to request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. To be appointed lead plaintiff, the Court must decide that your claim is typical of the claims of other class members, and that you will adequately represent the class. Your share in any recovery will not be enhanced or diminished by the decision whether or not to serve as a lead plaintiff. Any member of the proposed class may retain Cohen Milstein Sellers & Toll PLLC or other attorneys to serve as your counsel in this action, or you may do nothing and remain an absent class member. Cohen Milstein Sellers & Toll PLLC has significant experience in prosecuting investor class actions and actions involving securities fraud. The firm has offices in Washington, D.C., New York, Chicago, Philadelphia and West Palm Beach, and is active in major litigation pending in federal and state courts throughout the nation.