LOS ANGELES, Aug. 6, 2004 (PRIMEZONE) -- Notice is hereby given by Glancy Binkow & Goldberg LLP that a Class Action lawsuit was filed in the United States District Court for the Northern District of California on behalf of a class (the "Class") consisting of all persons who purchased or otherwise acquired securities of Netflix, Inc. ("Netflix" or the "Company") (Nasdaq:NFLX) between October 1, 2003 and July 15, 2004, inclusive (the "Class Period").
A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or obtain a copy of the Complaint at (310) 201-9150 or Toll Free at (888) 773-9224, by email at info@glancylaw.com, or visit our website at www.glancylaw.com.
The Complaint charges Netflix and certain of the Company's executive officers with violations of federal securities laws. Plaintiff claims that defendants' omissions and material misrepresentations concerning Netflix' operations and performance artificially inflated the Company's stock price, inflicting damages on investors. Netflix is the largest online movie rental subscription service in the United States. The complaint alleges that defendants deliberately understated the Company's "churn" rate (the percentage of its subscribers that cancelled per month) by utilizing a novel definition of churn that artificially decreased the Company's reported churn rate during quarters when the Company was adding large numbers of new subscribers. Additionally, Defendants repeatedly touted the Company's impressive subscriber growth without any direct disclosure in Netflix' earnings releases or SEC filings concerning the large percentage of subscriber cancellations during the respective quarters.
On July 15, 2004, after the close of trading, the Company for the first time disclosed that while the Company had added 537,000 new subscribers during the second quarter, in the same period it had suffered 422,000 subscriber cancellations, and though the Company added 1,343,000 new subscribers during the first half of 2004, in the same period it had suffered 737,000 subscriber cancellations. In response to this news, Netflix shares plummeted 38% over the next two days.
Plaintiff seeks to recover damages on behalf of Class members and is represented by Glancy Binkow & Goldberg LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.
If you are a member of the Class described above, you may move the Court, not later than September 20, 2004, to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9150 or Toll Free at (888) 773-9224 or by e-mail to info@glancylaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca