Netflix Shakes Off Derivative Suit Over Drop in Subscriber Base

Netflix Inc. shareholders failed to show that the company’s statements about a drop in its subscriber base were materially false or misleading, a federal court said Tuesday.

The class action lead by plaintiff Fiyyaz Pirani alleged that Netflix made misleading statements about subscriber growth in 2022 before revealing it had lost paying users and would likely lose more. When the misstatements were revealed, the company’s stock dropped $122.42 in one day, Pirani said.

Judge Jon S. Tigar of the US District Court for the Northern District of California previously dismissed the suit without prejudice but gave Pirani an opportunity to ...