Hagens Berman Continues Netflix Investigation, Reminds Investors of March 13, 2012, Deadline

Published on Friday, 27 January 2012 08:15 Written by TradersHuddle Staff

BERKELEY, Calif.-( Business Wire )-

Hagens Berman is continuing to investigate Netflix (NASDAQ:NFLX) for possible false or misleading statements to investors.

A class-action lawsuit has been filed on behalf of investors. The deadline in the case to move for lead plaintiff is March 13, 2012.

The case, filed in the United States District Court for the Northern District of California on Jan. 13, 2012, alleges that Netflix violated federal securities laws by failing to disclose in a timely fashion that short-term contracts with content providers would either expire or be extremely costly to renew. It also claims that company executives sold millions in company stock.

Investors who purchased shares of Netflix common stock between Dec. 20, 2010, and Oct. 24, 2011 (the “class period”), and have lost more than $500,000 are encouraged to contact Hagens Berman Partner Reed R. Kathrein at 510-725-3000. Mr. Kathrein is leading Hagens Berman’s investigation. Investors can also email Mr. Kathrein at This e-mail address is being protected from spambots. You need JavaScript enabled to view it. or can contact the firm online at www.hbsslaw.com/NFLX.

On Sept. 1, 2011, Starz announced that the company’s contract with Netflix would expire, and Netflix would be forced to pull the content from its service.

On July 12, 2011, Netflix announced that it was raising prices for some subscribers, and on July 13, 2011, the company announced a new multi-year agreement with NBC Universal. Following the news, Netflix stock closed at $298.73 per share.

The company then announced on Sept 15, 2011, that it was updating its third quarter 2011 guidance, disclosing that it had lost a million subscribers following the price increases. On this news, Netflix stock price declined by nearly 19 percent, closing at less than $170.00 per share.

On October 24, 2011, the company disclosed to shareholders a net loss of more than 800,000 subscribers. Netflix stock fell again, closing at $80.86 on Oct. 27, 2011.

According to the class-action complaint, Netflix executives sold over $90 million worth of the company’s stock during the class period. The lawsuit alleges that CEO Reed Hastings sold 190,000 shares for $43.2 million. The deadline to move the court for lead plaintiff status is March 13, 2012.

Whistleblowers

Persons with knowledge that may help the investigation are encouraged to contact the firm. The SEC recently finalized new rules as part of its implementation of the whistleblower provisions in the Dodd-Frank Wall Street Reform Bill. The new rules protect whistleblowers from employer retaliation and allow the SEC to reward those who provide information leading to a successful enforcement with up to 30 percent of the recovery.

About Hagens Berman

Hagens Berman Sobol Shapiro LLP is an investor-rights class-action law firm with offices in 10 cities, including Northern California, where the lawsuit is based. In addition to investors, the firm represents whistleblowers, workers and consumers in complex litigation. More about the law firm and its successes can be found at www.hbsslaw.com. The firm’s securities law blog is at www.meaningfuldisclosure.com.

Firmani + AssociatesMark Firmani, This e-mail address is being protected from spambots. You need JavaScript enabled to view it.