Saxena White P.A. announced that a class action lawsuit was filed against Coinstar, Inc. by Jeffrey Nagler in the United States District Court for the Western District of Washington (February 3, 2011, docket number 2:2011cv00192).
For more information visit: www.saxenawhite.com
Unedited press release follows:
Saxena White P.A. Files Securities Fraud Class Action Against Coinstar, Inc.
BOCA RATON, FL–(February 11, 2011) – Saxena White P.A. has filed a class action lawsuit in the United States District Court for the Western District of Washington on behalf of all investors who purchased Coinstar, Inc. (“Coinstar” or the “Company”) (NASDAQ: CSTR) securities. The new extended class period is between October 28, 2010 and February 3, 2011, inclusive.
Coinstar and certain of its officers and directors are charged with issuing a series of materially false and misleading statements. The complaint alleges that the defendants failed to disclose, among other material information, that: (1) the Company was suffering a decline in sales resulting from customers’ purchasing fewer DVDs per purchase, disrupting the Company’s operating plan; (2) poor inventory management and controls resulted in the Company removing material amounts of old inventory early in the fourth quarter of 2010, immediately and adversely impacting revenues and gross margins for that quarter; (3) lower sales of more expensive “Blu-ray” DVDs and poor title selection was resulting in lower sales; and (4) the Company was being adversely impacted by the 28-day delay that the movie studios had imposed on Coinstar, hampering the Company’s ability to meet the financial guidance defendants disseminated to the investing public.
On January 13, 2011, the defendants issued disappointing preliminary results for the fourth quarter of 2010. Instead of revenues over $415 million, revenues were $391 million. EPS, too, suffered by comparison: instead of $0.79-$0.85 per share, defendants disclosed likely EPS of $0.65-$0.69 per share. On this news, on January 14, 2011, trading in Coinstar common stock opened at $43.03 per share, down 24% from the January 13, 2011 close of $56.95. On January 14, 2011, Coinstar closed at $41.50, a 27% decline over the previous day’s close. Subsequently, on February 4, 2011, Coinstar fell again, to close at $38.96, after announcing that revenues for the first quarter of 2011 would not meet previous Company estimates.
You may obtain a copy of the complaint and join the class action at www.saxenawhite.com. If you purchased Coinstar stock between October 28, 2010 and February 3, 2011, inclusive, you may contact Joe White or Greg Stone at Saxena White P.A. to discuss your rights and interests.
If you purchased Coinstar shares between October 28, 2010 and February 3, 2011, inclusive and wish to apply to be the lead plaintiff in this action, a motion on your behalf must be filed with the Court no later than March 25, 2011. You may contact Saxena White P.A. to discuss your rights regarding the appointment of lead plaintiff and your interest in the class action. Please note that you may also retain counsel of your choice and need not take any action at this time to be a class member.
Saxena White P.A., which has offices in Boca Raton, Boston and Montana, specializes in prosecuting securities fraud and complex class actions on behalf of institutions and individuals. Currently serving as lead counsel in numerous securities fraud class actions nationwide, the firm has recovered hundreds of millions of dollars on behalf of injured investors and is active in major litigation pending in federal and state courts throughout the United States.