|Class Period:||Nov-28-10 to Jan-13-11|
|Lead Plaintiff Deadline:||Mar-25-11|
|Court:||Western District of Washington|
Coinstar and certain of its Officers are charged with making a series of materially false and misleading statements related to the Company's business and operations in violation of the Securities Exchange Act of 1934.
In particular, the lawsuit alleges that Coinstar failed to disclose during the Class Period a series of adverse factors which were negatively impacting its business and which would cause it to report declining financial results, well below the market expectations defendants had set with shareholders, including: (1) declining sales as customers purchased fewer DVDs per purchase, and as poor inventory management and controls resulted in the Company removing material amounts of old inventory early in 4Q; (2) lower sales of more expensive "Blue-ray" DVDs and poor title selection was resulting in lower overall sales; (3) the 28-day delay movie studios imposed on Coinstar was adversely affecting the Company – well before 4Q:10; (4) competition from online video streaming providers such as Netflix was adversely impacting the Company more acutely than it led on.
On January 13, 2011, when defendants reported results for the fourth quarter and full year 2010, shareholders first learned that the Company would earn as little as $.65 per share for the quarter on revenues of only $391 million, and not the analysts consensus estimate of $.84 per share, on revenue of $427 million. These disclosures had an immediate impact on the price of Coinstar stock, which declined almost 30% in the single trading day, or almost $15.50 per share, down to $41.50 from the prior day's close of almost $57.00 per share.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.