SOURCE: Brower Piven, A Professional Corporation

January 20, 2012 16:05 ET

Brower Piven Encourages Investors Who Have Losses in Excess of $1,000,000 From Investment in Netflix, Inc. to Inquire About the Lead Plaintiff Position in Securities Fraud Class Action Lawsuit Before the March 13, 2012 Lead Plaintiff Deadline

STEVENSON, MD--(Marketwire - Jan 20, 2012) - Brower Piven, A Professional Corporation announces that a class action lawsuit has been commenced in the United States District Court for the Northern District of California on behalf of purchasers of the common stock of Netflix, Inc. ("Netflix" or the "Company") (NASDAQ: NFLX) during the period between December 20, 2010 and October 24, 2011, inclusive (the "Class Period").

If you have suffered a net loss for all transactions in Netflix common stock during the Class Period, you may obtain additional information about this lawsuit and your ability to become a lead plaintiff by contacting Brower Piven at www.browerpiven.com, by email at hoffman@browerpiven.com, by calling 410/415-6616, or at Brower Piven, A Professional Corporation, 1925 Old Valley Road, Stevenson, Maryland 21153. Attorneys at Brower Piven have combined experience litigating securities and class action cases of over 60 years.

No class has yet been certified in the above action. Members of the Class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. If you wish to choose counsel to represent you and the Class, you must apply to be appointed lead plaintiff no later than March 13, 2012 and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement and how much of a settlement to accept for the Class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the Company during the Class Period. You are not required to have sold your shares to seek damages or to serve as a Lead Plaintiff.

The complaint accuses the defendants of violations of the Securities Exchange Act of 1934 by virtue of the Company's failure to disclose during the Class Period that Netflix had short-term contracts with content providers the renewal of which would necessitate renegotiation at much higher rates based on content providers already demanding much higher license fees and that, as a result thereof, Netflix's pricing would have to dramatically increase to maintain profit margins given the streaming content costs they knew the Company would soon be incurring and that the Company was not on track to achieve its earnings forecast for 2011. According to the complaint, after, on September 15, 2011, Netflix revealed that it had lost a million subscribers due to its recently announced price increases, after, on September 19, 2011, the Company announced that, in an effort to offset skyrocketing costs and rapidly defecting customers, the Company would begin charging separately for its two services, raising its prices by as much as 60%, and after, on October 24, 2011, Netflix reported a net loss of 810,000 U.S. subscribers, translating into a cumulative loss of 5.5 million subscribers, the value of Netflix shares declined significantly.

If you choose to retain counsel, you may retain Brower Piven without financial obligation or cost to you, or you may retain other counsel of your choice. You need take no action at this time to be a member of the class.

Contact Information

  • CONTACT:
    Charles J. Piven
    Brower Piven, A Professional Corporation
    Stevenson, Maryland
    410/415-6616
    Email Contact