NEW YORK--(BUSINESS WIRE)--
Rosen Law Firm, a global investor rights law firm, announces the filing of a class action lawsuit on behalf of purchasers of Netflix, Inc. securities (NASDAQ:NFLX) from July 22, 2014 through October 15, 2014, inclusive (the “Class Period”). The lawsuit seeks to recover damages for Netflix investors under the federal securities laws.
To join the Netflix class action, go to http://rosenlegal.com/cases-1084.html or call Phillip Kim, Esq. or Kevin Chan, Esq. toll-free at 866-767-3653 or email [email protected] or [email protected] for information on the class action.
NO CLASS HAS YET BEEN CERTIFIED IN THE ABOVE ACTION. UNTIL A CLASS IS CERTIFIED, YOU ARE NOT REPRESENTED BY COUNSEL UNLESS YOU RETAIN ONE. YOU MAY ALSO REMAIN AN ABSENT CLASS MEMBER AND DO NOTHING AT THIS POINT. YOU MAY RETAIN COUNSEL OF YOUR CHOICE.
The complaint alleges that Netflix failed to inform investors that its May 2014 price increase for monthly streaming subscriptions could have a big, negative impact on subscriber growth that is consistent with its prior experiences. Instead, on July 21, 2014, Netflix informed the market that the price increase had a “minimal” and “nominal” impact on subscriber growth and that any adverse effect on revenue was “background noise” with “no noticeable effect in the business.”
On October 15, 2014, Netflix revealed that the impact on earnings was hugely negative and slashed its projected earnings by almost 50%. Netflix also stated in its letter to shareholders that “[Y]ear on year net additions in the US were down (1.3 million in Q3 2013 to 1 million in Q3 2014). As best we can tell, the primary cause is the slightly higher prices we now have compared to a year ago. Slightly higher prices result in slightly less growth, other things being equal, and this is manifested more clearly in higher adoption markets such as the US.” On this news, shares of Netflix fell more than 19% to close at $361.70 per share on October 16, 2014, damaging investors.
A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than May 1, 2017. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, go to http://rosenlegal.com/cases-1084.html or to discuss your rights or interests regarding this class action, please contact Phillip Kim, Esq. or Kevin Chan, Esq. of Rosen Law Firm toll free at 866-767-3653 or via e-mail at [email protected] or [email protected].
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Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation.
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