Netflix Misled Investors Ahead of Subscriber Drop, Suit Says (1)

Netflix Inc. made misleading statements about subscriber growth before revealing it had lost paying users and would likely lose more, investors allege in federal court in California.

The streaming giant didn’t disclose how password sharing and streaming competition cost it about 200,000 net subscribers in the first quarter of 2022, according to the would-be class complaint filed in the U.S. District Court for the Northern District of California.

The Silicon Valley-based company told investors in January it had “slightly over-forecasted” growth in the fourth quarter of fiscal 2021, coming in at 8.3 million new subscribers instead of 8.5 million, but ...