According to Reuters on November 27, a judge on Tuesday dismissed a lawsuit filed by Netflix shareholders alleging that Netflix downplayed the impact of account sharing on user growth. Account sharing refers to the sharing of usernames and passwords between paying members and non-paying members of other households. This proposed class action lawsuit began two years ago. In April 2022, Netflix disclosed a loss of 0.2 million users in the previous quarter, the first decline in ten years, and may lose another 2 million users in the next three months. At that time, Netflix attributed the decline in users to several factors including account sharing, increased competition, and service disruptions due to the Russia-Ukraine conflict. The next day, Netflix's stock price fell by 35%, evaporating over $54 billion in market cap. However, United States District Judge Jon Tigar in Oakland, California, stated that Netflix had earlier claimed a penetration rate of around 60% in the US and Canada, with 'significant growth potential', which was not false or misleading as they were referring to paying users and did not suggest growth was guaranteed. He also found no evidence that Netflix had concealed any decisions indicating that account sharing would seriously hinder growth.