Netflix accused of securities fraud by shareholders
11:18, Thursday, 05 May, 2022
Netflix It’s being sued by shareholders, who allege that the streaming giant misled investors about declining subscriber growth. Last month, Netflix shared its first negative subscriber count in 10 years during its Q1 earnings report for 2022. The streaming service reportedly lost 200,000 subscribers, bringing their total to 221.64 million from 221.84 million. Additionally, Netflix anticipates catastrophic losses ahead in Q2, which is expected to lose another 2 million subscribers.
Following the recent news from Netflix, shares of the streaming service plunged, losing 35% of its value, costing the company and investors massive amounts of money. Netflix’s recent troubles are the exact opposite of where they were just a year ago. The company reportedly added around four million new customers in the first quarter of 2021. Prior to this, Netflix enjoyed a period of continuous growth for several years, adding more and more subscribers every year. Now, it looks like Netflix has even more problems on the horizon.