Netflix shareholders have filed a lawsuit in the US District Court for the Northern District of California, alleging that the streaming behemoth has lost customers recently. Netflix shareholders have accused Netflix management of lying to them about subscription growth and are seeking compensation for the loss of value in the company's stock.
Netflix took a heavy hit during the 4th quarter of 2021 with a 20% drop in its stock value. The company stated it didn't perform well in 2022 in the first quarter with the loss of 200K subscribers, and the ongoing Russia-Ukraine conflict also aided in the reduction of 700K Russian accounts. The company has too forecasted a loss of 2 million subscribers in the forthcoming months of 2022. Also, With 222 million subscribers, the company has received a year-over-year growth of 6.7% and has a 5% growth rate projection. It will be interesting to see how the company manages to reverse the damages it has incurred till now.