| Company: | Netflix |
| Ticker Symbol: | NFLX |
| Class Period: | Jul-3-12 to Jul-24-12 |
| Date Filed: | Feb-25-13 |
| Lead Plaintiff Deadline: | Apr-26-13 |
| Court: | Northern District of California |
| Allegations: | |
Netflix is the world' largest leading Internet television network with more than 33 million members in over 40 countries. The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements, and omitted materially adverse facts, about the Company' business, operations and prospects. Specifically, the Complaint alleges that: (a) the Company would report, in the second quarter of 2012, subscriber growth significantly lower than analysts' expectations; and (b) based on the available data, it would be challenging for the Company to achieve the projected 7 million new domestic streaming subscribers. As a result of defendants' false and misleading statements, the Company' stock traded at artificially inflated prices during the Class Period.
According to the Complaint, on July 3, 2012, Netflix Chief Executive Officer, Reed Hastings, posted on the Company' public Facebook page that "Netflix monthly viewing exceeded one billion hours for the first time ever in June."That announcement served to affirm Hastings' statements made during the Company' earning call on April 23, 2012 that Netflix was targeting 7 million new domestic subscribers for the year. The July 3, 2012 posting indicated that the Company was "continuing to execute on all of the key dimensions"and "everything was consistent with what [the Company had] been hoping for,"leading the market to believe that Netflix was on "target for the year"to achieve the 7 million net additions. On this news, the price of Netflix stock skyrocketed to $81.72 per share, a 13.4 percent increase, on volume of almost 15 million shares.
However, on July 24, 2012, the Company disclosed its second quarter 2012 results, which revealed that Netflix had only achieved 530,000 net subscription additions to date. Further, the Company noted that it may not reach its target of adding 7 million domestic streaming subscribers by the end of the year. On this news, shares in Netflix fell 25%, closing at $60.28 per share on July 25, 2012, from a close of $80.39 per share on July 24, 2012, on volume of over 24 million shares.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
