Netflix Gets Shareholder Lawsuit Over Subscriber Drop Tossed

Netflix Inc. staved off allegations that it misled investors about subscriber growth before revealing the negative impacts of password sharing and streaming competition, according to a federal judge’s order dismissing the shareholder class action.

The investors failed to plead that Netflix knowingly made false statements, Judge Jon Tigar said in a Jan. 5 order dismissing the case in US District Court for the Northern District of California.

Shareholder Fiyyaz Pirani filed the suit in May 2022, seeking to recover damages for investors who acquired Netflix stock between Jan. 19, 2019 and April 19, 2022, alleging that the company and executives ...