Netflix has been hit with a class action lawsuit alleging the company misled stockholders or failed to disclose bad news regarding subscriber numbers earlier this year, the Pomerantz Law Firm announced Wednesday.
The lawsuit, filed in the Northern District of California, says Netflix made “false and/or misleading statements and/or failed to disclose” that the company would miss an expected target number of new subscribers, and that they would also lose subscribers from the U.S. in the second quarter of 2019.
The lawsuit notes that Netflix released a letter to shareholders on July 17, admitting to the missed target, and that they lost 126,000 subscribers in the U.S. The company’s Chief Financial Officer attributed the missed target to the “timing of [Netflix’s] content slate” and price increases.
Netflix’s stock took a tumble over the next two trading days, falling $47.34 per share, over 13%.
Pomerantz Law Firm created a contact form for affected shareholders to join the class action.