A group of shareholders has filed a claim with the U.S. District Court for the Northern District of California against Netflix. The claim accuses the entertainment company of giving false and misleading statements in regards to their business practices and contracts with studios.
No one likes to be sued, but this is likely an even harder hit for Netflix, as the company has seen stocks plunge in recent months. It looks like all those changes to their DVD rental, and Streaming plans haven’t work out as quite as they had planned.
According to the complaint Netflix executives sold 388,661 of company shares out of their own Netflix stock while the shares were at a high — A sale that netted $90.2M. Well, it certainly seems as if a few executives are about to be in some very hot water!
Those listed as defendants are Netflix Chief Executive Officer Reed Hastings, Chief Financial Officer David Wells, Chief Content Officer Ted Sarandos, Chief Marketing Officer Leslie Kilgore, and Chief Product Officer Neil Hunt. Oooh.. I’d sure hate to be them right about now.
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