SAN FRANCISCO (Legal Newsline) — A stockholder has filed a class action lawsuit against Netflix and two of its top executives, alleging the media company understated the impact of its subscription price hike in violation of federal law.
James Ziolkowski filed a complaint on behalf of all others similarly situated on March 1 in the U.S. District Court for the Northern District of California against the company, as well as CEO Reed Hastings and Chief Financial Officer David Wells, alleging that they issued false and misleading statements regarding the company's financial results.
According to the complaint, the plaintiff alleges that he suffered damages from purchasing Netflix stock at artificially inflated prices. The plaintiff holds Netflix, Inc., Reed Hastings, and David Wells responsible because the defendants allegedly downplayed the effect a price hike had on the number of subscribers to the movie and TV-streaming service. Ziolkowski alleges defendants issued false statements regarding the company in order to artificially inflate stock prices.
The plaintiff requests a trial by jury and seeks pay damages, interest, and any other relief as this court deems just. He is represented by Ramzi Abadou of Kahn Swick & Foti in San Francisco and by Jeffrey Krinsk, David Harris Jr., and Trenton Kashima of Finkelstein & Krinsk in San Diego.
U.S. District Court for the Northern District of California Case number 4:17-cv-01070-HSG