Netflix is facing a class action lawsuit from disgruntled investors who claim that the company withheld information about the hike in costs to renegotiate content contracts ahead of the slump in the company's share price when the news did eventually come out last autumn.The lawsuit has been filed in a Californian court and claims that the company's management team failed to reveal information they should have to investors and calls for compensation for those who invested in the company between December 2010 and October last year.
Netflix - who have now of course launched in the UK too - are yet to respond to the filing, which claims they violated the Securities Exchange Act of 1934.
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