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Thursday, February 14, 2013

U.S. judge throws out Netflix shareholder lawsuit, (NASDAQ: NFLX)

Netflix Inc won the dismissal of a shareholder lawsuit accusing the dominant U.S. video rental and streaming company of inflating its share price by concealing its rising costs, even as insiders like Chief Executive Reed Hastings sold millions of dollars of stock.U.S. District Judge Samuel Conti in San Francisco on Wednesday said the plaintiffs failed to show that Netflix materially misled them about its accounting, its pricing trends, the relative profitability of its streaming and DVD businesses, and its dealings with U.S. securities regulators.He also said Hastings did not materially mislead investors in a conference call on Dec. 8, 2010, when he said Netflix would benefit from a "virtuous cycle" where it could add subscribers and streaming content while lessening its DVD-by-mail costs.Netflix's share price fell 76 percent between early July and late October 2011, to $74.25 from $304.79, as the Los Gatos, California-based company raised prices, lost subscribers and set plans it soon abandoned to spin off its DVD business.

Netflix, Inc. (Netflix), incorporated on August 29, 1997, is an Internet subscription service streaming television shows and movies. Shares of NFLX traded higher by 1.05% or $1.951/share to $188.22. In the past year, the shares have traded as low as $52.81 and as high as $188.88. On average, 5076840 shares of NFLX exchange hands on a given day and today's volume is recorded at 3601750.