Why I’m Bullish on Netflix Stock, Despite Pending Lawsuits

*Suits Don't Slow the Company*

*LOS ANGELES, CA / ACCESSWIRE / July 22, 2020 / *Two recent lawsuits will likely not damage Netflix's ($NFLX) position atop the internet streaming world. In fact, recent strengths and increases in earnings due to Coronavirus may mean that the company's model is here to stay. If anything, I'm bullish on their stock. However, I'd like to take a moment to discuss two recent lawsuits against the company and the potential effects on the bottom line and on programming.

About the Author

Michael Ehline is a leading personal injury attorney in Southern California. The Los Angeles based lawyer is the lead attorney in the Ehline Law Firm APLC and uses his decades of experience to better understand high profile lawsuits and cases. Below he discusses the potential ramifications of two lawsuits against the streaming company. He can be reached at (213) 596-9642 or at michael@ehlinelaw.com. He also runs a law blog on his site. Contact him for more info or for feedback on this piece.

A Racial Discrimination Lawsuit

One of the pending cases is a discrimination lawsuit from the actress Mo'Nique. The actress, whose legal name is Monique Angela Hicks, is suing the online giant over accusations of discrimination. Recent developments show that she might actually win the case.

Netflix challenged Mo'Nigue's case in court, asking the California Central District Court to throw it out in summary judgement. However, Judge Andre Birotte Jr wrte that the actress and comedian's lawsuit had plausibility, and allowed it to continue through to the next step. The star said that the streaming giant offered her a half a million dollars to do a one hour comedy special. However, she said that her offer was much less than that offered to much more popular acts, such as Jerry Seinfeld or Dave Chappelle. Mo'Nique is suing the company for an unspecified amount for damages. She claims that the company engaged in both gender and race discrimination. According to her lawyer, David RuBertis, who wrote in USA Today that Netflix is acting in bad faith. He said that the company is trying to shut down "good-faith negotiations."

A Tiger King Lawsuit

Remember at the beginning of the pandemic the craze that followed the premiere of the Netflix hit Tiger King? It was a flash in the pan and a major ratings hit for the web giant. It brought in millions of viewers stuck at home due to the Cornavirus to watch the adventures of Joe Exotic and Carole Baskin.

Still Continuing in the Tradition of the Hit Series

According to the Hollywood Weekly Magazine, they coined the phrase Tiger King. The magazine claims in a lawsuit that it first used that appellation to refer to the tiger keeper Joe Exotic back in 2013. They state that their nickname was exclusively in use in referring to the former animal zoo star. Furthermore, the company did not file for a trademark until July 2nd. The Magazine claims that there is an unwanted association with the popular show that was hurting its reputation. Hollywood Weekly Magazine is demanding damages and a disgorgement of profits and the end of the program and all advertising. The case was cited in the Hollywood Reporter recently.

According to the magazine, which is available at over 500 locations worldwide, it suffered severe issues due to the spread of the show. Furthermore, the magazine said that the show violated its strict "no gossip" policy and undoes its 20 years of building a reputation. It also claims that the Netflix show shows their magazine in its scene. The company claims that this is evidence that Netflix knew about their magazine and stole the trademark from them.

The magazine also said that its advertisers no long want to advertise with them due to their alleged connection to a "tawdry television program." In the lawsuit filed with the United States District Court - Central District of California - Western Division, their attorneys Matthew H. Schwartz and Michael F. Frank seek damages for several complaints. One is for Federal Trademark Infringement. Another is for Federal Copyright Infringement. Another is for False Designation of Origin. Yet another is for Trademark Dilution. Another is for Common Law Copyright Infringement. Another, according to the California Business and Professions Code is for Unfair Business Practice. There is a complaint for Unjust Enrichment, as well.

Do the Lawsuits Have a Chance?

I need to do more research on each lawsuit from my experience as a trained legal professional. There are often many contexts yet to be uncovered and more info that will be released post deposition. Furthermore, in many cases, the court will request certain documents to back up or prove the initial requests for damages. In many cases, this makes it a bit early to determine the actual valid nature of some arguments.

That being said.

I think that both cases do not threaten the long term stability of the streaming giant. The number of Americans stuck at home due to the pandemic means that their business model is sound. Even if both the Magazine and Mo'Nique win their lawsuits, the chances that the tech giant will just pick up stakes is minimal. Furthermore, neither suit threatens to destroy Netflix's strong subscriber model.

This means that the company is likely here to stay. With the recent rally in tech stocks, Netflix is often leading the pack. It wouldn't surprise me if the company is a major winner for the rest of 2020. As part of my practice I see many lawsuits-- some justified and some less so. I plan to write more about the subject in the near future. Keep reading here for more info. I also plan to watch Netflix stock closely. That and a lot of its programs. If there are any updates on the suits, you know where to find me.

I'm hoping that Netflix's legal team can help sort out whatever needs to be done for our next binge on the couch.

Citations

*Ehline Law Law Blog.* https://ehlinelaw.com/blog
*Black Enterprise: FEDERAL JUDGE SIDES WITH MO'NIQUE IN PENDING DISCRIMINATION LAWSUIT AGAINST NETFLIX*https://www.blackenterprise.com/federal-judge-sides-with-monique-in-pending-discrimination-lawsuit-against-netflix/
*USA Today: Mo'Nique's discrimination 'lowballing' lawsuit against Netflix over pay can go forward, court rules*https://www.usatoday.com/story/entertainment/celebrities/2020/07/16/moniques-discrimination-lawsuit-against-netflix-can-go-forward/5455386002/
*NME: Netflix is being sued over ‘Tiger King'* https://www.nme.com/news/tv/netflix-is-being-sued-over-tiger-king-2711345
*Hollywood Reporter: Pandemic Binge Hit 'Tiger King' Sparks Trademark Lawsuit Calling for "Destruction" of the Series * https://www.hollywoodreporter.com/thr-esq/tiger-king-sparks-trademark-suit-netflix-cbs-imagine-1303568

*Ehline Law: Practice Areas.* https://ehlinelaw.com/practice

Contact Person: Michael Ehline

Contact Info: michael@ehlinelaw.com

*SOURCE: *Ehline Law Firm
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