Lawsuit filed against Netflix

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(CNN) - Remember the whole Netflix-Qwikster debacle? Some investors are now suing the online movie-rental service for money lost in the failed split.

According to the class action lawsuit alleges that senior management at Netflix traded stock at inflated prices prior to the Qwikster announcement.

The suit also says Netflix knew it would soon need to raise prices to pay higher licensing fees and didn't tell investors that many of its contracts to stream content would need to be re-negotiated at a higher price.

Both which would result in a price hike for customers.

Netflix has not responded to the lawsuit.

Copyright 2012 Scripps Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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