NEW YORK, July 23, 2019 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Netflix, Inc. ("Netflix" or the "Company")(NFLX) of the September 20, 2019 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Netflix stock or options between April 17, 2019 and July 17, 2019 and would like to discuss your legal rights, click here: www.faruqilaw.com/NFLX. There is no cost or obligation to you.
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The lawsuit has been filed in the U.S. District Court for the Northern District of California on behalf of all those who purchased Netflix securities between April 17, 2019 and July 17, 2019 (the "Class Period"). The case, Wallerstein v. Netflix, Inc. et al., No. 19-cv-04195 was filed on July 22, 2019, and has been assigned to Judge Lucy H. Koh.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (1) Netflix would not be able to gain its expected target number of new subscribers in the second quarter of 2019; (2) Netflix would also lose subscribers from the United States in the second quarter of 2019; and (3) as a result, defendants' public statements were materially false and misleading at all relevant times.
On July 17, 2019, after the market closed, Netflix released a letter to shareholders which revealed that Netflix missed its expected target for number of new subscribers. The letter to shareholders revealed that Netflix lost 126,000 subscribers in the United States during the second quarter of 2019. On the same day, Netflix held an earnings call to discuss its financial and operating results for the quarter. During the call, the Company's Chief Financial Officer attributed the missed subscription target to the "timing of [Netflix's] content slate" and price increases.
On this news, Netflix's share price fell from $362.44 per share on July 17, 2019 to a closing price of $315.10 on July 19, 2019: a $47.34 or a 13.06% two-day drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative 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. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Netflix's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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