Ninth Circuit Affirms Dismissal of Securities Class Action Against Netflix
On April 11, 2016, the U.S. Court of Appeals for the Ninth Circuit affirmed the dismissal of a securities class action complaint against Netflix, its co-founder and CEO Reed Hastings, and its current and former CFOs. Wilson Sonsini Goodrich & Rosati represented the defendants in the matter.
The case arose from announcements in 2011 concerning Netflix's decision to split its then combined DVD and streaming service offerings into separate subscription plans. The plaintiffs filed suit, ultimately focusing on a theory that the defendants purportedly made false and misleading statements regarding the profitability and prospects of the streaming business. Judge Samuel Conti of the U.S. District Court for the Northern District of California rejected the theory, finding the plaintiffs' allegations to be "implausible," and dismissed the case with prejudice. After the judgment was entered, the plaintiffs filed a motion to open the judgment to file a second amended complaint, which Judge Conti denied. The plaintiffs appealed. The Ninth Circuit affirmed the district court's rulings.
The Wilson Sonsini Goodrich & Rosati team that represented the defendants included partners Keith Eggleton and Rod Strickland, Of Counsel Cheryl Foung, associates Luke Liss and Lauren Zweier, and paralegals Shea Savage, Mariana McNamara, and Stephanie Van Horn.
Please refer to the Ninth Circuit's decision for more information.