Rigrodsky & Long, P.A. Announces A Securities Fraud Class Action Lawsuit Has Been Filed Against Netflix, Inc.
Rigrodsky & Long, P.A.
Do you, or did you, own shares in Netflix, Inc. (NASDAQ GS: NFLX)?
Did you purchase your shares prior to July 3, 2012, or between July
3, 2012 and July 24, 2012, inclusive?
Did you lose money in your investment in Netflix, Inc.?
Do you want to discuss your rights?
& Long, P.A. announces that a complaint has been filed in the
United States District Court for the Northern District of California on
behalf of all persons or entities that purchased the common stock of
Netflix, Inc. (“Netflix” or the “Company”) (NASDAQ GS: NFLX)
between July 3, 2012 and July 24, 2012, inclusive (the “Class Period”),
alleging violations of the Securities Exchange Act of 1934 against the
Company and certain of its officers (the “Complaint”).
Netflix is the world’s 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’s 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’s 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’s 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’s 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 wish to serve as lead plaintiff, you must move the Court no later
than April 22, 2013. A lead plaintiff is a representative party acting
on behalf of other class members in directing the litigation. In order
to be appointed lead plaintiff, the Court must determine that the class
member’s claim is typical of the claims of other class members, and that
the class member will adequately represent the class. Your ability to
share in any recovery is not, however, affected by the decision whether
or not to serve as a lead plaintiff. Any member of the proposed class
may move the court to serve as lead plaintiff through counsel of their
choice, or may choose to do nothing and remain an absent class member.