Business and Technology

Shareholder sues Netflix over subscriber slip

A Netflix shareholder is seeking class action status for a lawsuit accusing the streaming television titan of not making it clear that subscriber numbers were in peril. A disclosed drop of just 200,000 users — less than 0.1 percent of its total customer base — was enough to send shares plunging after Netflix announced quarterly earnings in April.

The company anticipates a much larger drop in the current quarter — of around two million net subscribers. The suit filed in federal court in San Francisco accuses top executives at Netflix of not telling investors that subscriber growth was slowing due to people sharing accounts and competition ramping up in the market.

“Defendants’ positive statements about the company’s business, operations, and prospects were materially false and/or misleading and/or lacked a reasonable basis,” read the suit filed by lawyers at Glancy Prongay & Murray on behalf of a shareholder.
The Los Gatos, California-based company has long defended its no-ads model, which set it apart from competitors such as Disney+, HBO Max and Apple.

For Pivotal analyst Jeff Wlodarczak, streaming “appears nearly fully penetrated globally post-Covid,” and the companies now must set their sights on converting pirates into subscribers, gaining greater market share from each other and driving up prices.”

The suit is seeking to represent everyone who owned Netflix shares in the six months ending April 19, 2022, and is asking for unspecified cash damages as well as compensation for financial losses.

Source: eNCA

In other news – Photos: A look into Khanyi Mbau and Lasizwe’s late father’s tombstone unveiling

South African actress, musician, and socialite Khanyi Mbau and social media personality Lasizwe Dambuza recently got together with their close family members to celebrate and unveil their late father Menzi Mcunu’s tombstone.

Khanyi Mbau

 

 

Menzi Kwame Mkrumah Mcunu passed away in September 2020 at the age of 61. The late taxi boss reportedly succumbed to Covid 19-related illness at the height of the pandemic. Learn more