A former Netflix Inc. (NASDAQ:NFLX) executive has accused the streaming giant of wrongful termination, alleging the company fired him after he disclosed medically prescribed ketamine therapy during a workplace trust-building exercise.
Ex-Netflix Exec Says Trust Exercise Disclosure Sparked Investigation
Kevin Baillie, the former vice president and head of creative at Eyeline Studios, a Netflix-owned visual effects division, has sued the company, the New York Post reported on Sunday.
Baillie claimed that he lost his $1.1 million-a-year job after revealing he had undergone physician-supervised ketamine therapy for depression.
According to the lawsuit, Baillie received the treatment in October and November 2022 at a clinic in Santa Barbara following the death of his mother.
During a company retreat in January 2026 at Netflix-owned Sendero Ranch in Northern California, employees participated in a “Vulnerability-Trust exercise” designed to encourage personal openness.
Baillie said he shared his experience with ketamine therapy during the session and explained that it was prescribed to treat clinical depression.
Lawsuit Claims Ketamine Therapy Became Factor in Termination
The lawsuit alleges that Netflix later launched an investigation into Baillie’s comments, with a company investigator raising the issue on March 18, 2026, “in a manner suggesting suspicion of recreational drug use.”
Baillie was terminated the following month. The complaint alleges that a Netflix attorney acknowledged that “the ketamine therapy issue has factored into the termination.”
The lawsuit also claims Baillie was denied up to one year of severance pay.
Executive Alleges Double Standard Over Workplace Drinking Culture
The complaint says the investigation also examined allegations involving profanity and alcohol consumption during the retreat.
Baillie notes he had previously been told during a performance review to “drop one or two less f-bombs but don’t stop entirely.”
The lawsuit also references an incident in which Baillie drank a Guinness while standing on his head after colleagues asked him to demonstrate the trick during a conversation prompted by the trust exercise.
Additionally, Baillie alleges Eyeline Studios CEO Jeff Shapiro fostered an alcohol-friendly workplace, claiming Shapiro brought beer on company outings, hosted parties and kept a bar in his office, where he served alcohol to employees, including after a meeting with Netflix co-CEO Ted Sarandos.
Netflix did not immediately respond to Benzinga’s request for comments.
Netflix Q2 Profit Beats as Revenue Falls Short
Netflix reported second-quarter revenue of $12.56 billion, up 13% year over year, but slightly below Wall Street expectations of $12.59 billion.
The company posted earnings of 80 cents per share, topping analysts’ estimates of 79 cents per share.
For the third quarter, Netflix expects revenue of $12.86 billion, representing 12% year-over-year growth, driven by gains in memberships, pricing and advertising revenue.
That guidance, however, falls short of the Street’s consensus estimate of $13.01 billion.
Price Action: Netflix shares closed at $70.09 on Friday, up 1.74%, according to Benzinga Pro.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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