A former Netflix software engineer allegedly tipped off his brother and close friend about Netflix’s subscriber base to gain trading profits.
Three former Netflix employees along with two others have been charged for allegedly performing insider trading of Netflix. The charges, pressed by the US Securities and Exchange Commission (SEC), accuse the five individuals of generating over $3 million in total profits by trading on confidential information about Netflix’s subscriber growth. According to the SEC’s complaint, Sung Mo Jun, who is a former Netflix software engineer, headed a long-running scheme to illegally trade on non-public information concerning the growth of Netflix’s subscriber base, a key metric Netflix reports for its quarterly earnings announcements.
