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.

LA Tech Week 2026: Saturday’s Event Lineup

🔦 Spotlight

LA Tech Week 2026 heads into the weekend Saturday with more opportunities to learn, meet fellow builders and explore what is being created across the region. Browse the day’s events by neighborhood below and find the gatherings worth leaving the house for.

ARTS DISTRICT

BEL AIR

5:00 PM

CULVER CITY

10:00 AM

1:00 PM

4:00 PM

DOWNTOWN

11:00 AM

2:00 PM

  • South Asians in Space, Physical AI: See Details Here
    american south asian network

5:00 PM

7:00 PM

HOLLYWOOD

8:00 PM

INGLEWOOD

10:00 PM

LONG BEACH

10:00 AM

12:00 PM

LOS FELIZ

8:30 AM

  • Griffith Observatory Hike with Longevity Cities & Don't Die LA: See Details Here
    Longevity Cities

MALIBU

5:00 PM

MARINA DEL RAY

9:30 AM

  • The Brazen Capital Walk: Connecting Women, Capital & Opportunity: See Details Here
    BrazenEra

6:00 PM

  • Build an AI workflow editor, natively in Angular: See Details Here
    Workflow Builder

SANTA MONICA

7:00 AM

  • Founders Running Club Run in Santa Monica: See Details Here
    Founders Running Club, MongoDb

9:00 AM

  • MOLTEN - Spatial hackathon (ElevenLabs, AssemblyAI, Rokoko, Datafeel...): See Details Here
    Field Lab

2:00 PM

3:30 PM

6:00 PM

7:00 PM

SOUTH LA

7:00 PM

THE VALLEY

7:30 PM

UCLA

11:00 AM

USC

9:00 AM

10:00 AM

10:30 AM

VENICE

8:00 AM

  • Open Air Health Tech: See Details Here
    Open Air Health Tech, Bowshock, Govitamins App

10:00 AM

10:30 AM

11:00 AM

12:00 PM

6:00 PM

  • Bots, Bytes & Bubbles Benefit: See Details Here
    Distinguished Minds Institute dba thinqueBytes®

VIRTUAL

9:00 AM

  • Ask a VP of Sales: Live GTM Office Hours for Early-Stage B2B Founders: See Details Here
    Kat Rucker Consulting Group

11:00 AM

WEST HOLLYWOOD

11:00 AM

  • The 10x Engineer Showed Up. The 10x Organization Didn't.: See Details Here
    Workflow Builder, Tentaro

3:00 PM

WESTSIDE

11:00 AM

2:00 PM

  • Graphic Design & Digital Printing Meetup: See Details Here
    Big Frog Custom T-Shirts & More of West LA

7:00 PM

WESTWOOD

12:00 PM

Each session provides unique opportunities to gain insights, network, and explore various fields of tech innovation. For updates or more event information, visit the official Tech Week calendar.

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