June 05, 2022 00:36 ET | Source: Pomerantz LLP Pomerantz LLP
New York, New York, UNITED STATES
NEW YORK, June 05, 2022 (GLOBE NEWSWIRE) — Pomerantz LLP is investigating claims on behalf of investors of Netflix, Inc. (“Netflix” or the “Company”) (NASDAQ: NFLX). Such investors are advised to contact Robert S. Willoughby at firstname.lastname@example.org or 888-476-6529, ext. 7980.
The investigation concerns whether Netflix and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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On January 20, 2022, after the market closed, Netflix reported that it “slightly overforecasted paid net adds in Q4,” adding 8.3 million subscribers compared to the 8.5 million forecast. The Company also stated that, despite “healthy” retention and engagement, it only expected to add 2.5 million net subscribers during first quarter 2022, below the 4.0 million net adds in the prior year period.
On this news, Netflix’s stock price fell $110.75 per share, or 21.7%, to close at $397.50 per share on January 21, 2022.
Then, on April 19, 2022, after the market closed, Netflix reported that it lost 200,000 subscribers during the first quarter of 2022, compared to prior guidance expecting the Company to add 2.5 million net subscribers. The Company cited the slowing revenue growth to four factors, including account sharing with an estimated 100 million additional households and competition with other streaming services.
On this news, Netflix’s stock price fell $122.42 per share, or over 35%, to close at $226.19 per share on April 20, 2022.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com
Robert S. Willoughby
888-476-6529 ext. 7980