San Diego, Feb. 16, 2012 (Shareholders Foundation) -- An investor in shares of Netflix, Inc. (NASDAQ:NFLX) filed a lawsuit against directors of Netflix over alleged breached their fiduciary duties, abused their control, and wasted millions of dollars.
The lawsuit by the current investor against directors over alleged breaches of fiduciary duties follows an earlier lawsuit by investors against Netflix itself over alleged Securities Laws Violations. The lawsuit against Netflix itself was filed only for investors who purchased NFLX shares between December 20, 2010 and October 24, 201, while the lawsuit against directors was filed on behalf of all current NFLX stockholders.

On July 25, 2011, after the market closed, Netflix, Inc. (NASDAQ: NFLX) has released its second-quarter 2011 financial results. Netflix’ third-quarter sales and profit forecast missed analysts’ estimates and Netflix Inc. disclosed that a price change would cause a negative impact in new customer signups.
On September 15, 2011, Netflix, Inc updated its third quarter 2011 guidance and revealed that it had lost a million subscribers due to its recently announced price increases becoming effective.

On September 19, 2011, so the lawsuit, Netflix, Inc announced that, in an effort to offset costs and rapidly defecting customers, Netflix, Inc would begin charging separately for its two services and had raised prices as much as 60%.

Then, on October 24, 2011, Netflix issued its third quarter 2011 shareholder letter, which reported a net loss of 810,000 U.S. subscribers.

Shares of Netflix, Inc. (NASDAQ: NFLX) declined from as high as almost $300 in July 2011 to slightly over $77 on October 25, 2011 and declined in November 2011 to as low as $63.85 per share.

Since then NASDAQ:NFLX shares have recovered some value and closed on February 16, 2012 at $121.91 per share, still less than half the value from July 2011.