Netflix Sued by Shareholders Over Alleged False Statements
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Netflix Inc., the film-streaming and mail-order DVD service, was sued by shareholders who accuse the company of concealing increased costs it faced, which inflated its share price as insiders sold their shares for $90 million.
Netflix officers knew the company faced higher license fees from its content providers before announcing on Sept. 15 that it had lost 1 million subscribers after price increases, according to the complaint filed today in federal court in San Francisco.