Netflix stockholders fail to persuade US judge over streaming lawsuit

August 21
9:55 PM 2013

On Tuesday, San Francisco's US District Judge Samuel Conti dismissed a court case filed by the shareholders of Netflix Inc. Conti said the stockholders headed by Arkansas Teacher Retirement System and State-Boston Retirement System failed to resolve the shortcomings in the previous version of the lawsuit he rejected in February.

"All of plaintiffs' allegations - new and old - depend on the tenuous theory that defendants withheld discrete and accurate financial information about streaming while also touting streaming's profitability," Conti noted. "The court has not found this to be the case."

The shareholders have been trying to make Netflix pay the damages for misleading them regarding the company's streaming operations prospects since January 2012. However, the federal judge said the stockholders did not deserve another chance to pursue the suit.

In the second quarter, Netflix said it has over 37 million streaming subscribers, an 800,000 plunge from last year. The video rental and streaming corporation's total revenue was USD1.07 billion with an earnings per share of USD0.49.

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