Netflix – Activision Blizzard sues Netflix for poaching CFO Spencer Neumann
Netflix continues to face authorized challenges because it lures high-level executives from rival leisure firms.
On Friday, Santa Monica-based Activision Blizzard sued Netflix over its recruitment of chief monetary officer Spencer Neumann.
Neumann left Activision Blizzard on the finish of December 2018, breaking his settlement to be employed on the firm till at the least April 30, 2020, in response to a lawsuit filed by Activision in Los Angeles County Superior Courtroom.
“Netflix’s illegal conduct is just not trailblazing or progressive — it’s simply reflective of Netflix’s contempt for the legislation of the State of California,” Activision mentioned in its lawsuit.
Netflix declined to remark.
Activision’s authorized motion follows different firms like Fox and Viacom which have filed lawsuits in opposition to Netflix for poaching their executives who had fixed-term contracts.
A choose final yr ordered Netflix to cease poaching executives beneath fixed-term agreements from Fox. The Los Gatos, Calif.-based streaming big appealed that call in September.
Activision is requesting in its lawsuit that an injunction is positioned on Netflix barring the corporate from recruiting Activision workers who’re on fixed-term agreements and that Netflix pay damages.
When Neumann left, Activision mentioned it paid his successor hundreds of thousands extra in compensation when it needed to shortly substitute its CFO and paid hundreds of thousands of {dollars} in further compensation to different executives to encourage them to remain on the firm.
“Netflix’s illegal habits almost about Neumann is not any anomaly,” Activision Blizzard mentioned in its lawsuit. “On the contrary, Netflix has a demonstrated sample of caring solely about attracting and using whoever Netflix desires, no matter whether or not it violates the legislation alongside the way in which.”
Neumann grew to become Netflix’s CFO in January 2019. Previous to Neumann becoming a member of Netflix, the corporate’s earlier CFO, David Wells, “demurred” when he was supplied an opportunity to maneuver to L.A., mentioned Netflix co-CEO Reed Hastings in an earnings name in October.
“He had done so well as a generalist and tech CFO,” Hastings mentioned of Wells. “We felt tremendous lucky to recruit Spence Neumann, who’s been just like the dream CFO for Netflix.”
