Netflix is on a rough run lately, chasing customers away with a price increase, announcing poorly-received spin-off plans for its disc rental service and failing to secure the Twitter account for its new brand, Qwikster. Now the company is tangled up in a lawsuit over its plans to build a new Bay Area headquarters.

According to The Hollywood Reporter, residents of Los Gatos, Calif. are suing the town for apparently breaking its own rules in approving Netflix’s new four and five-story buildings, which surpass the town’s limit of three stories. The plaintiffs are also worried about trees that will have to be removed to make way for the buildings, as well as traffic congestion resulting from the project.

The town council wants to welcome Netflix in hopes of snagging as much as $1 million in taxes. The town manager says the town’s legal counsel will consider the suit’s merits and impact before making a recommendation of how to advise the council.

Netflix’s Plans For New Headquarters Prompts Lawsuit [The Hollywood Reporter]

Previously: Netflix DVD Service To Be Renamed Qwikster, Will Offer Video Games

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