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Already dealing with backlash from a price increase, Netflix now might have to work on placating some angry neighbors.
STORY: Netflix Shares Tumble on Revised Subscriber Growth
Some residents of Los Gatos, where Netflix is constructing a new headquarters, have sued to prevent or slow down the construction because the buildings would be too high, trees would need to be removed and traffic could get worse.
STORY: Netfilx Stock Drops 8% After Starz Renewal Talks End
The group suing calls itself Los Gatos Citizens for Responsible Development, according to the San Jose Mercury News, and it filed its lawsuit against the town.
STORY: Netflix Reacts: Starz Content Is ‘Down to About 8% of Domestic Netfilx Subscribers’ Viewing’
The news outlet said the town council approved the construction of five- and four-story buildings seven weeks ago, even though the town’s height limit is three stories.
“The matter has been referred to legal counsel for review,” town manager Greg Larson told the Mercury News. “We will then analyze the lawsuit’s merits and impacts, if any, before making a recommendation to the town council.”
The move could be a boon to Los Gatos, reports CBSSanFrancisco.com, bringing in as much as $1 million in tax revenue.
“The citizens’ group does not wish to stop the project. We’re just seeking environmental review,” attorney Rachel-Mansfield-Howlett told the Mercury News.
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