

It's been a rough couple of weeks for Netflix with things only set to get worse for the streaming platform, as one of its shareholders has now filed a lawsuit against the company.
Brought forward by Imperium Irrevocable Trust, the complaint was made to the US district court in California on May 3rd, 2022. It states that Netflix "mislead" investors by failing to "disclose material adverse facts" regarding its subscriber count. This relates to fact that Netflix lost 200,000 subscribers during the first three months of 2022.
A letter was sent to shareholders as part of Netflix's financial results for its third quarter, noting that it saw "positive effects of a stronger slate in the second half of the year" with Netflix chief financial officer Spencer Neumann also commenting that "the business remained healthy" throughout the period. This has now been looked upon as misleading by shareholders and it will now be settled in court.
The suit looks to address anyone who owned shares between October 19th, 2021 and April 19th, 2022.
“Specifically, Defendants failed to disclose to investors: (1) that Netflix was exhibiting slower acquisition growth due to, among other things, account sharing by customers and increased competition from other streaming services; (2) that the Company was experiencing difficulties retaining customers; (3) that, as a result of the foregoing, the Company was losing subscribers on a net basis; (4) that, as a result, the Company’s financial results were being adversely affected; and (5) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially false and/or misleading and/or lacked a reasonable basis." reads the filing (via Deadline).
"As a result of Defendants’ wrongful acts and omissions, and the precipitous decline in the market value of the Company’s securities, Plaintiff and other Class members have suffered significant losses and damages."
Netflix's monetary issues have seen numerous of its original shows cancelled over the last few months, though that hasn't stopped Strangers Things from getting a $30 million budget per episode. This lawsuit also comes off the back of a new proposal from the British government that looks to change how streaming services are operated in the country and potentially beyond.
Sign up to the T3 newsletter for smarter living straight to your inbox
Get all the latest news, reviews, deals and buying guides on gorgeous tech, home and active products from the T3 experts
At the very least, Netflix did renew its surprise hit drama, Sweet Magnolias, for a rare third season.

Matt is a freelance writer for T3, covering news and keeping up with everything games, entertainment, and all manner of tech. You can find his work across numerous sites across the web, including TechRadar, IGN, GamesRadar, Tom's Guide, Fandom, NME, and more. In his spare time, Matt is an avid cinema-goer, keen runner and average golfer (at best). You can follow him @MattPoskitt64
-
Netflix in May: Five new shows and movies you need to know about
Netflix is going for a big month
-
Netflix's new feature update could enhance viewing for millions of subscribers
If you love subtitles, Netflix has the ideal new feature for you
-
Netflix's new series looks like The Queen's Game crossed with Naruto – in the best way
Netflix brings another manga to the screen
-
3 Netflix TV shows that are as uncomfortable to watch as they are gripping
Some of the best shows on Netflix can disturb for one reason or another – here are three that give you the shivers but are still unmissable
-
I can tell this new Netflix comedy series is going to have a sad twist
The Four Seasons will have light and shade
-
Netflix's most surprising 100%-rated sci-fi series returns with gorgeous trailer
Love Death + Robots is back for more
-
This runaway Netflix no.1 hit shows reviews aren't everything
Ignore The Life List's Rotten Tomatoes score
-
You only have days to catch this sci-fi stunner - it's leaving Netflix soon
A Quiet Place: Part II is terrifying