Netflix, Inc. (NASDAQ:NFLX) has filed a suit against its former vice president of information technology operations Mike Kail, who is now chief information officer at Yahoo! Inc. (NASDAQ:YHOO). The company claims that Kail, who left Netflix, Inc. (NASDAQ:NFLX) in 2014 August for Yahoo! Inc. (NASDAQ:YHOO) helped the streaming company patching up some deals with two companies: Vistara and NetEnrich. Netflix, Inc. (NASDAQ:NFLX) agreed to pay a commission of $3.7 million to the companies. All the payments were agreed to be paid through Kail. Kail, who was also running a consultation company Unix Mercenary, is accused of getting 15% of the commission from the two companies without notifying Netflix, Inc. (NASDAQ:NFLX). The company claims that all the payments were approved by Kail and were funneled to his consultation firm.
An article on Re/Code reported this news. The source said that spokesperson from both the companies refused to comment on this issue. If Netflix’s claims are true, Kail could have got $450,000 and $560,000 from the total payments made by Netflix, Inc. (NASDAQ:NFLX). Yahoo! Inc. (NASDAQ:YHOO)’s CIO was called for the comment but there is no reply from him till yet. Netflix, Inc. (NASDAQ:NFLX) has declined to comment on this news.
Netflix, Inc. (NASDAQ:NFLX) filed this lawsuit on Monday in California state court. The company thinks that Kail is also involved in frauds in other deals apart from the said contracts. If Kail is declared guilty by court, this could create problems at Yahoo! Inc. (NASDAQ:YHOO) and Marissa Mayer can fire him.
The source quoted Netflix, Inc. (NASDAQ:NFLX), which says that Kail could have got other benefits apart from cash which could include gifts and stocks.
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