Published On: Fri, Nov 28th, 2014

Netflix Sues Former VP for Fraud

NETFLIX

Netflix is suing its former VP Mike Kail for allegedly taking kickbacks when he was with the company. Kail is now an executive with Yahoo.

Netflix has accused Kail of fraud, unlawful behavior and breaching his duties as a Netflix executive. It is seeking damages of at least $25, 000 as well as costs incurred as a result of filing the lawsuit.

According to the suit, Netflix claims that it paid information technology companies, Vistara and NetEnrich $3.7 million from 2012 until Kail left the company in August. Kail in turn was allegedly paid 12 to 15% in commissions, which amounted to between $450, 000 to $560, 000.

Both of the companies cited in the complaint are run by the same person, Raju Chekuri.

“In light of such findings, Netflix brings this lawsuit to obtain compensation and restitution for damages and harm inflicted on Netflix as a result of such actions, ” the lawsuit said.

The suit further claims that Kail received payments from other companies too.

The alleged malfeasance occurred when Kail was Netflix’s vice president of Internet technology. He is now the chief information officer with Yahoo. According to Netflix it did not discover the improprieties until after Kail left the company.

The suit was filed on Monday.

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