Netflix Board Hit With Insider Trading Case Over Subscriber Drop

An investor sued Netflix Inc.'s senior leaders in Delaware, saying several of them made more than $100 million in insider stock sales while misleading the public about the market shifts that led the company’s stock to plunge twice in early 2022.

The lawsuit targets 14 current and former members of the streaming giant’s board, including CEO Ted Sarandos and executive chairman Reed Hastings, who stepped down as chief executive in January. It was made public late Wednesday, as Netflix’s shares were surging on news of strong subscription growth and its plan to raise prices.

The complaint in Delaware’s Chancery Court ...