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Netflix Newsroom
The proposed class action by netflix shareholders was dismissed by the judge, who had previously accused it of misleading user growth forecasts.
Gelonghui November 27th | According to Reuters, a judge on Tuesday dismissed a lawsuit brought by Netflix shareholders, accusing Netflix of downplaying the impact of account sharing on user growth. Account sharing refers to the practice of paid members sharing usernames and passwords with non-paying members of other households. This proposed class action lawsuit began two years ago, after Netflix revealed in April 2022 that it had lost 0.2 million users in the previous quarter, the first decline in a decade, and may lose another 2 million users in the next three months. Netflix at the time attributed the decline in users to several factors, including account sharing, intensified competition, and service disruptions caused by the Russia-Ukraine conflict.
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