SAN JOSE, Calif. (Legal Newsline) - Securities class action firm Grant & Eisenhofer has signed up a Cleveland pension fund to sue Netflix over a loss in its stock value.
Cleveland Bakers and Teamsters Pension Fund sued Netflix May 31 in San Jose, Calif., federal court, hoping to represent investors who lost money when Netflix announced it lost 200,000 subscriptions during the first quarter of 2022.
Upon that news, its stock price fell $122.42 per share to close at $226.19 on April 20. It traded around $197 per share on Tuesday.
Those who invested after Jan. 19, 2021, were misled by the company's statements regarding its financial situation, the lawsuit says.
"The market for Netflix’s securities was open, well-developed and efficient at all relevant times," the suit says.
"As a result of the materially false and/or misleading statements and/or failures to disclose, Netflix’s securities traded at artificially inflated prices during the Class Period."