Case against Netflix for misleading the market

A texas investor filed a shareholder lawsuit against Netflix in San Francisco and accused Netflix of deluding the market about its estimates of subscribers in recent months, by missing its growth estimates of subscribers. According to the lawsuit, the top officials did not reveal that the company was missing growth targets in the midst of rising competition and about subscribers leaving the platform on a net basis. In January, Netflix’s shares had dropped by 20% due to decreasing growth in subscriber base. The company had targeted to add 2.5 million subscribers, whereas in the first quarter of the year it lost around 20,0000 subscribers. In April, its shares dropped by more than 35%. According the company, the responsible factors for its quarterly decline were increased competition from other streaming services, inflation, and the interruption of its services in Russia after Russia invaded Ukraine. The plaintiff in the case is a Houston tech investor, Fyyas Pirani, according to media sources.