Some people hate nothing more than being told the ending when they watch a series. What is the dark secret of the German Netflix series Dark? Some find it scandalous to reveal such things, but it is not illegal. The case appears to be completely different with three former Netflix employees revealing to two accomplices how something is going: namely the secret Netflix growth numbers. The United States Securities and Exchange Commission wants you to answer in court: You would have made $ 3 million on these stock market spoilers. The insider trading trial has yet to be approved by the court. The US attorney’s office in Seattle is also prosecuting four of the men.
While still working at Netflix, SEC employees reportedly exchanged secret inside information. Like all large stock exchange companies, Netflix presents the most important key financial data to the interested audience on a quarterly basis – at the same time, so that everyone has the same opportunity to buy or sell stocks based on that information. . With the streaming service, the number of subscriptions is crucial. If they have risen much faster or slower than expected, it can lead to big rises or falls in prices.
It is precisely this important information that the so-called insiders were aiming for. The first men are said to have started in 2016: A Netflix employee explained to his brother and a close friend how the numbers would change. Before they were made public and corresponding stock market reactions ensued, the men traded with Netflix stock. The man left Netflix in 2017, but according to the SEC another employee was a source. The third employee informed the others ahead of time about the growth in subscriptions in 2019. Over time, their alleged insider trading should have been so profitable that they made millions in profit. Overall, according to the SEC, members of the group acted ahead of the announcement of 13 Netflix quarterly results between July 2016 and July 2019.
The US Securities and Exchange Commission calls it a “multi-million dollar long-term plan.” The men therefore used encrypted messengers.
The Bloomberg News Agency has asked lawyers for the accused to comment. The first man’s legal adviser, who is said to have played the central role, did not respond. That of the second employee of Netflix did not want to comment. Lawyers for the two accomplices responded that they had accepted responsibility for their actions and wanted to move on and be done.