9th Circuit Upholds Dismissal of Netflix Securities Litigation

The 9th U.S. Circuit Court of Appeals upheld a U.S. District Court ruling tossing out a shareholder complaint spearheaded by the Arkansas Teacher Retirement System and State-Boston Retirement System alleging federal securities law violations by Netflix. In a memorandum (in Pacer) Monday, a 9th Circuit three-judge panel said the plaintiffs didn't adequately allege any Netflix omissions or statements during the class period -- Oct. 20, 2010, to Oct. 24, 2011 -- that falsely talked up the viability or profitability of its streaming service. "Netflix repeatedly referenced the financial risk in getting its online-streaming business off the ground," and made clear to investors that profit margins could take a hit, the memorandum said. The 9th Circuit also upheld the District Court's 2013 decision (see 1308220072) to deny the plaintiffs' motion to file an amended complaint after their earlier complaint was dismissed with prejudice, saying the District Court was right in holding the amended complaint doesn't state an actionable claim and further amendment "would prove futile." Counsel for the plaintiffs didn't comment.