November 4, 2022
(LOS ANGELES, C.A.) – A Netflix shareholder filed a lawsuit in September against the company claiming it violated their shareholder and company relationship as well as broke federal security laws.
Mindy Lehmann, alleges in court in a lawsuit that Netflix’s board of directors blamed subscriber decline on the pandemic instead of providing factual information to the public and company shareholders on their evident company struggles. Instead, Netflix sent misleading statements to shareholders about subscriber growth, retention, and any worries about other streaming competition, according to the lawsuit filed in the U.S. District Court in Northern California.
According to the federal lawsuit, Netflix’s subscriber count dropped drastically in April. Netflix also reported that it had lost 200,000 subscribers instead of gaining the expected 2.5 million subscribers. Netflix stock dropped 60% in 2022, according to the lawsuit. Lehmann purchased Netflix stock in August 2018 and continues to hold onto her shares.
In their third quarter, Netflix added 2.5 million subscribers to the platform. According to the lawsuit, despite the recent subscriber growth, Netflix stock is still down 50% and costs about $281 per share.
Prior to filing the lawsuit, Lehmann made no specific monetary demand but called on Netflix to instill board oversight reforms and mend their damages.
The Click reached out to attorneys Keith E. Eggleton and Joel E. Elkins via email–both parties have not responded.