Netflix (NFLX.O) has lost a lawsuit filed in federal court in California by shareholders who accused the streaming entertainment company of concealing the extent to which account sharing was hampering its growth.
The Texas-based mutual fund announced its May 2022 investment after Netflix's stock lost a third of its value after the company said it was seeing its first decline in subscribers in 10 years. filed a lawsuit.
The lawsuit sought damages on behalf of the investors who purchased the products. Netflix will hold the shares from January 2021 to April 2022.
U.S. District Judge John Tigar ruled Friday that the lawsuit contains no evidence that the company was aware of the extent of the problem for the period investors allege.
The judge said investors could sue again if they add more facts to support their claims.
A Netflix spokesperson and a lawyer for the trust did not immediately respond to requests for comment Monday.
Netflix lost about half its value between January 2022, when it warned of sluggish subscriber growth, and April, when its stock plummeted after the company said account sharing and competition were hindering new subscriptions. Ta.
Netflix's then-CEO Reed Hastings said at the time that the coronavirus pandemic had made it difficult for the company to decipher subscription trends.
Netflix stock was up 1.1% at $479.09 as of midday Monday.
