Faruqi & Faruqi, LLP 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).
A copy of the complaint can be downloaded from Faruqi & Faruqi’s website.
For more information visit: www.faruqilaw.com
Unedited press release follows:
Faruqi & Faruqi, LLP Announces Filing of Class Action Lawsuit Against Coinstar, Inc. – CSTR
NEW YORK–Notice is hereby given that Faruqi & Faruqi, LLP has filed a class action lawsuit in the United States District Court for the Western District of Washington on behalf of all purchasers of Coinstar, Inc. (“Coinstar” or the “Company”) (NASDAQ: CSTR) common stock between October 28, 2010, and January 13, 2011, inclusive (the “Class Period”). A copy of the complaint filed in this action can be viewed on the firm’s Web site at www.faruqilaw.com
Coinstar and certain of its officers and directors are charged with issuing a series of materially false and misleading statements in violation of Section 10(b) and 20(a) of the Exchange Act and Rule 10b-5 promulgated thereunder. Specifically, the complaint alleges that, defendants failed to disclose 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, 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.
Plaintiff seeks to recover damages on behalf of himself and all other individual and institutional investors who purchased or otherwise acquired Coinstar common stock between October 28, 2010, through January 13, 2011, excluding defendants and their affiliates. Plaintiffs are represented by Faruqi & Faruqi, LLP, a law firm with extensive experience in prosecuting class actions and actions involving corporate fraud.
If you wish to obtain information concerning joining this action you can do so under the “Join Lawsuit” section of our website at: www.faruqilaw.com
If you purchased Coinstar common stock during the Class Period, you may, not later than March 25, 2011, move the court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action, or have any questions concerning this notice or your rights or interests, please contact:
ANTHONY VOZZOLO, ESQ.
FARUQI & FARUQI, LLP
369 Lexington Avenue, 10th Floor
New York, NY 10017
Telephone: (877) 247-4292 or (212) 983-9330
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