Netflix sues Yahoo CIO Michael Kail for alleged kickbacks

A person looks at a tablet with Netflix on the screen. (AP / Elise Amendola)

NEW YORK -- Netflix is suing a former company vice-president who is now chief information officer at Yahoo, accusing him of receiving money from vendors he hired to work with the video streaming company.

Netflix says in the lawsuit that two companies paid Michael Kail commissions of up to 15 per cent after he secured contracts with them. To date, Los Gatos, California-based Netflix says it paid the companies a combined total of more than $3.7 million.

Netflix says it was not aware of the payments until after Kail left in August for Yahoo. At Yahoo Inc., based in Sunnyvale, California, Kail oversees data centre operations and reports to CEO Marissa Mayer.

Yahoo and Netflix Inc. declined to comment. Kail did not immediately respond to a request for comment.