Netflix Hid Negative Financial Data: Investor

Law360, New York (January 30, 2012, 7:13 PM EST) -- A Netflix Inc. shareholder on Friday lodged a proposed class action over the home entertainment giant's failure to disclose information that eventually led to a plunge in stock value and its ill-fated plan to split into two companies.

In a complaint filed in California federal court, shareholder Davin Pokoik claims Netflix, CEO Reed Hastings and other executives misled investors into believing the company was strong when they knew it was actually bleeding customers and would soon need to hike subscription prices.

"As a result of defendants'...
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