Television Business International

Netflix lawsuit dismissed

The lawsuit accusing Netflix of misleading investors has been dismissed by a US court.

A group of shareholders in the US-listed streaming and delivery service had alleged it had hidden costs while insiders sold stock.

However, Reuters reports, a district judge in a San Francisco court ruled on February 12 that the shareholders had not demonstrated they had been misinformed about costs and accounting methods.

Specifically, the judge said company CEO Reed Hastings had not misinformed investors on a 2010 conference call following quarterly results in which he addressed subscriber acquisition and operating costs.

The shareholders have a month to amend the terms of their suit, Reuters reported.