Netflix Hit With Shareholder Lawsuit Amid Plummeting Stock Price
Photo by Venti Views on Unsplash

Netflix Hit With Shareholder Lawsuit Amid Plummeting Stock Price

The fallout from Netflix’s disastrous first-quarter earnings continues with a new shareholder lawsuit that claims the streaming giant misled investors about its ability to sign up more subscribers.

According to Reuters, a Texas-based investment trust has accused Netflix and its leaders of failing to disclose its slowing growth and that it was shedding subscribers as it amid heightened streaming competition. The lawsuit, filed Tuesday in federal court in San Francisco, is seeking monetary damages for the sharp drop in Netflix's share price after the company missed its subscriber projections.


Netflix shares cratered last month after investors learned that the streaming platform had lost subscribers for the first time in more than a decade in the first quarter, and expects to lose 2 million more in the current second quarter. The company’s stock price plummeted more than 35% on April 20, the day after Netflix disclosed its first quarter financial results. Netflix shares closed at $204.01 on Wednesday, a mighty fall from their nearly $700 stock price in November.

During Netflix’s most recent earnings call, company leaders blamed increased competition, password sharing and Russia’s invasion of Ukraine, among other factors, for the sharp subscriber slowdown. Executives claimed that COVID-19 had initially clouded the company’s outlook for future growth.

The lawsuit names Netflix co-CEOs Reed Hastings and Ted Sarandos and Chief Financial Officer Spencer Neumann as defendants, according to Reuters. The suit, which is seeking class-action status, was filed on behalf of investors who traded Netflix shares between Oct. 19, 2021 and April 19, 2022.

Tinder Co-Founder Justin Mateen Grabs $247.5 Million for a New Fund

JAM Fund, the venture capital firm launched by former Tinder chief marketing officer Justin Mateen, secured nearly a quarter of a billion dollars over the summer for a new fund.

A prolific angel investor, Mateen told Business Insider earlier this year he had a preference for founders who have a "chip on their shoulder."

Mateen, who co-founded the dating app that brought the world "swipe right" and countless unwelcome sexual solicitations, locked down his first investment for the recent fund on July 16. Since then he's raised at least $247.5 million from 15 undisclosed limited partners, a recent regulatory filing reveals.

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Harri Weber

Harri is dot.LA's senior finance reporter. She previously worked for Gizmodo, Fast Company, VentureBeat and Flipboard. Find her on Twitter and send tips on L.A. startups and venture capital to harrison@dot.la.

Montgomery Summit Updates: Zynga Hunting Gaming Acquisitions; Moxie the Robot Looks to Partner with Schools
Photo by Joseph Ngabo on Unsplash

This year's Montgomery Summit – held online this year for the first time - features Eric Yuan, CEO & founder of Zoom, author Deepak Chopra, Darius Adamczyk, CEO of Honeywell, and Jim Whitehurst, president of IBM.

There will be about 100 hours of content available exclusive to those who have paid and registered, but, for the first time, 12 hours of plenary sessions will be free for anyone to stream on YouTube, opening panels to a much bigger audience around the world.

See the full agenda here. We'll be watching, and will keep you up to date with takeaways from the conference. Follow updates from the event below and check our Twitter account for more.

Day 2:

Day 1:

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Pat Maio
Pat Maio has held various reporting and editorial management positions over the past 25 years, having specialized in business and government reporting. He has held reporting jobs with the San Diego Union-Tribune, Orange County Register, Dow Jones News and other newspapers in Ohio, West Virginia, Maryland and Washington, D.C.
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