Robbins umeda llp announces an investigation of netflix, inc.
San diego--(business wire)--shareholder rights firm robbins umeda llp is investigating possible breaches of fiduciary duty and other violations of the law by certain officers and directors at netflix, inc. (nasdaq: nflx). concerned shareholders who would like more information about their rights and potential remedies can contact attorney gregory e. del gaizo at (800) 350-6003 or via the shareholder information form on the firm's website. robbins umeda llp's investigation focuses on whether officials at netflix breached their fiduciary duties to shareholders, maintained inadequate controls, and wasted corporate assets to the detriment of the company and investors. in particular, the firm is investigating allegations that members of the board of directors were unjustly enriched by a scheme that caused netflix to buyback the company's stock at artificially inflated prices. in particular, between 2007 and june 30, 2011, members of the board oversaw the company's purchase of $994 million worth of its own company's stock at allegedly inflated prices. further, fiduciaries of the company continued with the ill-advised buyback program despite the fact that: (a) netflix would soon be forced to raise subscription costs; (b) that the company was losing access to some of its premium content; and (c) that officials were planning to separate the company's mail and online service platforms. recently, netflix announced fee increases, changes in content and services, and a substantial decline in subscribers. these disclosures have caused the value of netflix shares to plummet by over 70%. additionally, it is alleged that prior to these disclosures, while shares of netflix traded at artificially high prices, individual members of the board exercised and sold stock options worth hundreds of millions of dollars. together, these actions by officials have subjected netflix to costly public and legal scrutiny that continues to harm the company and investors. robbins umeda llp highlights that netflix shareholders have the option to file a derivative action to hold those officers and directors accountable for damaging the company. remedies commonly sought in derivative actions include corporate governance reforms designed to prevent future misconduct, removal of officers or directors whose misconduct injured the corporation, and monetary payments in the form of damages and disgorgement of ill-gotten gains. robbins umeda llp is a nationally recognized leader in securities litigation and shareholder rights law. the firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. for more information, please go to http://www.robbinsumeda.com. press release link: http://www.robbinsumeda.com/shareholders-rights-blog/netflix/ attorney advertising. past results do not guarantee a similar outcome.
NFLX Ratings Summary
NFLX Quant Ranking
You've reached your free article limit.
Want To Read More Articles?
See what it all means for your stocks with premium tools
Stockprices is a weekly video covering what moved markets
this week, featuring a panel of Stockprices editors. It is published by the
close of trading on Fridays. Hosted by Nathaniel E. Baker, contributing editor,
and featuring: Aaron Task, VP Contributor Content and co-host Stockprices's Alpha
Trader podcast; Brad Olesen, VP News; Steve Alpher, Managing Editor News, co-host
Alpha Trader.
Unsubscribe From All
You successfully activated
“Only Essentials”
Confirm Upgrade
Your subscription will be moved to the annual plan. Service will automatically renew unless cancelled. No Refunds. Click upgrade to confirm.
Stockprices uses Plaid to connect you account
Connect effortlessly
Plaid lets you securely connect your financial accounts in seconds
Your data belongs to you
Plaid doesn't sell personal info, and will only use it with your permission