Netflix Reportedly Sues Former VP Over Kickbacks
Mike Kail is now chief information officer at Yahoo
Netflix is accusing a former vp of collecting kickbacks, and the streaming-media company has filed a lawsuit against the former executive, who is now the chief information office at Yahoo.
According to the technology website Re/code, Netflix is suing Mike Kail for fraud and breaching his fiduciary duties because he arranged contracts with Vistara and NetEnrich, a couple of information technology companies, then collected commissions paid to Unix Mercenary, a consulting company he controls.
In the lawsuit filed by Netflix, the firm says it paid Vistara and NetEnrich $3.7 million from 2012 through Kail's departure in August, and he was paid from 12 to 15 percent of that in commissions, which would amount to $450,000 to $560,000.
The lawsuit also says that Netflix believes Kail received payments from other companies as well.
Netflix and Yahoo did not respond to a request for comment.