Netflix and fraud and more

Netflix and fraud

As Netflix cracks down on subscribers who share passwords, its shareholders have filed a lawsuit against the streaming service for securities fraud.

In the suit, shareholders accuse Netflix of misleading them about difficulties retaining customers and contend they suffered significant losses because of Netflix’s misleading information.

Netflix reported in April it lost 200,000 subscribers and warned it could lose two million more, causing its stock to plunge 35%. However, Netflix had previously predicted it would gain 2.5 million subscribers and said business was strong. Shareholders are seeking damages from stock losses.

The company recently announced plans to shore up losses by charging extra fees to subscribers who share their passwords with people outside their home. (See “Netflix Hit With Shareholder Lawsuit After Disclosing Subscriber Loss,” by Winston Cho, The Hollywood Reporter, May 4, 2022, and “Netflix is finally going after password sharing. Here’s how it’s likely to work,” by Alex Sherman, CNBC, April 23, 2022.)

The Mercedes of swindles

Spanish police have unraveled a 10-million-euro luxury rental car scheme after apprehending two people at the Slovenia border with fake driver’s licenses. The individuals were driving high-end cars with falsified documents from a Spanish rental company.

The discovery of the fancy cars with faux papers led Spanish authorities to an organized criminal enterprise that rented luxury cars and falsified documents to sell them lower than market price throughout Europe. The police arrested 82 people and seized 58 luxury vehicles connected to the scam. (See “Spanish police arrest dozens, seize luxury vehicles in fraud operation,” La Prensa Latina, May 8, 2022.)

Schooled in ransomware

In a goodbye letter to students, Lincoln College recounted surviving economic crises and world wars over its 157-year history, but the one-two punch of COVID-19 and a ransomware attack was insurmountable. The small historically black college in rural Illinois is the first U.S. college to shut down in part because of a ransomware attack.

The cyberattack blocked Lincoln’s recruitment, retention and fundraising systems. By the time they were restored, the school realized it had a shortfall in its enrollment projections that could only be remedied with a significant donation.

The attack reportedly originated in Iran, and the school paid a ransom of under $100,000 to recover its data. Lincoln’s last day is May 13, 2022. (See, “Illinois college, hit by ransomware attack, to shut down,” by Kevin Collier, NBC News, May 9, 2022, and “Lincoln College to Close, Hurt by Pandemic and Ransomware Attack,” by Christine Chung, New York Times, May 9, 2022.)