Netflix Hit With Shareholder Lawsuit Amid Plummeting Stock Price
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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.

Image courtesy of Superjoi

Fintech startup Superjoi, which lets fans fund creators’ content projects, has raised $2.5 million in pre-seed funding.

Superjoi raised the funding from fintech-focused investors including Ascension Ventures, QED Investors, Systema VC, Tomahawk and Modern Venture Partners. The round also included participation from senior leadership at e-commerce platform Shopify, fintech firm Revolut and Los Angeles-based live-in accelerator Launch House.

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Christian Hetrick

Christian Hetrick is dot.LA's Entertainment Tech Reporter. He was formerly a business reporter for the Philadelphia Inquirer and reported on New Jersey politics for the Observer and the Press of Atlantic City.

​CEO of CRATE Modular
photo by Decerry Donato

Nick, a former inmate, has been living in the Hilda L. Solis Care First Village (HSCFV), a permanent supportive housing complex built by CRATE Modular using 66 retrofitted shipping container units, for a little over a year.

Without this housing complex, Nick would be among the 66,436 people currently experiencing homelessness in Los Angeles County.

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Decerry Donato

Decerry Donato is a reporter at dot.LA. Prior to that, she was an editorial fellow at the company. Decerry received her bachelor's degree in literary journalism from the University of California, Irvine. She continues to write stories to inform the community about issues or events that take place in the L.A. area. On the weekends, she can be found hiking in the Angeles National forest or sifting through racks at your local thrift store.