SOURCE: Izard Nobel LLP

January 18, 2012 14:17 ET

Izard Nobel LLP Announces Class Action Lawsuit Against Netflix, Inc.

WEST HARTFORD, CT--(Marketwire - Jan 18, 2012) - The law firm of Izard Nobel LLP, which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed 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) between December 20, 2010 and October 24, 2011, (the "Class Period").

The Complaint alleges that Netflix and certain of its officers and directors violated federal securities laws. Specifically, defendants failed to disclose the following: (i) Netflix had short-term contracts with content providers and defendants were aware that the Company faced the choice of renegotiating the contracts in 2011 at much higher rates or not renewing them at all; (ii) content providers were already demanding much higher license fees, which would dramatically alter Netflix's business; (iii) defendants recognized that Netflix's pricing would have to dramatically increase to maintain profit margins given the streaming content costs they knew Netflix would soon be incurring; and (iv) Netflix was not on track to achieve the earnings forecasts for 2011.

On October 24, 2011, Netflix reported a net loss of 810,000 U.S. subscribers and, disclosed in a subsequently filed Form 10-Q, that Netflix's obligations for content over the coming years had skyrocketed to $3.5 billion, with $2.8 billion due within three years. On this news, Netflix stock plunged from $118.84 on October 24, 2011 to $80.86 on October 27, 2011.

If you are a member of the class, you may, no later than March 13, 2012, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members.

While Izard Nobel LLP has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, and your rights, visit: www.izardnobel.com/nexflix/, or contact Izard Nobel LLP toll-free: (800)797-5499, or by e-mail: firm@izardnobel.com. For more information about class action cases in general, please visit our website: www.izardnobel.com.

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