Netflix Held Back Negative Financial Info: Investors' Suit

Law360, New York (January 13, 2012, 10:29 PM EST) -- Netflix Inc. shareholders hit the movie and television service with a putative class action Friday, alleging the company withheld vital financial information from its investors that eventually caused stock prices to decline rapidly at significant costs to shareholders.

The City of Royal Oak Retirement System, which filed the case in California federal court, accuses the company of concealing negative trends in its business that allowed insiders to cash in on stock price highs but caused investors to pay falsely inflated prices for their shares.

According to...
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