LegalZoom.com, Inc. (LZ)
Whether directors and officers of LegalZoom.com, Inc. (LZ) breached their fiduciary duties to the company and its shareholders.
Investigation
04/20/2022
Initial Lawsuit
05/03/2022
Lawsuit Progression
07/05/2022
Did Netflix mislead shareholders/investors regarding trends in growing users and the weight of competitors’ platforms impact on its revenue? Were recent disclosures only the tip of the iceberg? Netflix revealed a large discrepancy in forecasted revenue growth, operating margin and paid net adds between previous years and the numbers disclosed on January 20, 2022 and April 19, 2022.
These questions are to be answered by the company, investors themselves, or by a judge in a court of justice. Until then, we have opened this page for investors to gather facts, findings and track related lawsuits. We invite investors and shareholders to contribute to investigations for their own benefit, add events to the factual timeline below and vote on events’ pertinence.
A lawsuit was subsequently filed. We will update this post as it unfolds.
04/19/2022
Netflix posts its Q1 2022 shareholder letter, revealing a decrease in paid subscribers of 200,000 and forecasting the loss of 2 million subscribers during the following quarter. During the conference call, executives explain that while they forecasted +2.5million subscribers they delivered “0.5 million, if you exclude Russia.”
“So, there’s really a 2 million miss in our Q1 actuals versus guidance. And what’s really reflected there is acquisition growth was consistent with what we expected. We were seeing that slowdown when we did the guide, and it played out as expected. The difference is really some slight elevated churn throughout Q1.”
Netflix CFO Neumann further explains that “the slightly elevated churn relative to [their] expectations” was not due to price increases but rather to some “slight uptick in seasonality . . . some of the strain in Central and Eastern Europe, some of that macro strain [they] saw, and maybe a little bit of competition on the margin.”
Stock Impact
Close | Previous close | Price variation | Percentage variation |
---|---|---|---|
$226.19 | $348.61 | $-122.42 | -35.12% |
A Netflix shareholder filed a class action on behalf of persons and entities that purchased or otherwise acquired Netflix common stock or call options, or sold put options, between October 19, 2021 and April 19, 2022, inclusive.
(1) that Netflix was exhibiting slower acquisition growth due to, among other things, account sharing by customers and increased competition from other streaming services;
(2) that the company was experiencing difficulties retaining customers;
(3) that, as a result of the foregoing, the company was losing subscribers on a net basis;
(4) that, as a result, the company’s financial results were being adversely affected; and
(5) that, as a result of the foregoing, defendants’ positive statements about the company’s business, operations, and prospects were materially false and/or misleading and/or lacked a reasonable basis.
The lead plaintiff deadline has passed, we will update this page as the lawsuit progresses.
Last event retrieved on 10/07/2022.
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