SAN FRANCISCO--(BUSINESS WIRE)--Hagens Berman Sobol Shapiro LLP, an investor-rights law firm, gives 60 day notice to eligible shareholders who wish to serve as lead plaintiff in the securities lawsuit against Coinstar Inc. (NASDAQ GS:CSTR). The lawsuit claims that Coinstar violated the Securities Exchange Act of 1934 by allegedly making a series of misleading statements.
CSTR shareholders who wish to be a lead plaintiff must file a motion to serve no later than March 25, 2011. Shareholders who purchased large quantities of CSTR common stock between October 28, 2010 and January 13, 2011, as well as knowledgeable witnesses, are encouraged to contact Hagens Berman partner Reed R. Kathrein at 510-725-3030 or at coinstar@hbsslaw.com for a consultation regarding lead plaintiff status or to discuss known facts.
The lawsuit, filed by Hagens Berman on behalf of investors, claims Coinstar failed to properly disclose market conditions and other factors that may have negatively impacted financial results. Respective factors identified in the lawsuit are:
- Declining sales and poor inventory management;
- Lower sales of “Blue-ray” DVDs;
- The impact of the decision of movie studios to impose a 28-day delay for new releases; and
- The impact of increased popularity of online video streaming providers such as Netflix.
On January 13, 2011, Coinstar issued its fourth quarter earnings statement and reported $391 million in revenues for 2010, which missed analyst forecasts set at $427 million. Immediately following the news, CSTR stock lost nearly 30 percent of its value, or $15.50 per share in a single day of trading.
Hagens Berman believes Coinstar failed to responsibly notify its shareholders about the known impact of certain market conditions that might damage the company’s financial performance. The firm seeks to help recover losses on behalf of eligible investors.
Hagens Berman also seeks further support of those allegations by witnesses, former employees, shareholders and others with original information. Under the recently enacted Dodd-Frank Wall Street Reform and Consumer Protection Act, whistleblowers who provide original information about Securities Exchange Act violations to the Securities Exchange Commission may receive between 10-30 percent of any enforcement action that yields a monetary recovery of over $1 million. Whistleblowers may work anonymously through an attorney.
You can learn more about this case at www.hbsslaw.com/coinstar.
About Hagens Berman
Seattle-based Hagens Berman Sobol Shapiro LLP is an investor-rights class-action law firm and represents whistleblowers in cases under the federal False Claims Act and state false claims acts. The firm also specializes in Wall Street Reform Whistleblower litigation. Hagens Berman has offices in Boston, Chicago, Colorado Springs, Los Angeles, Phoenix, San Francisco and Washington, D.C. Founded in 1993, HBSS continues to successfully fight for investor rights in large, complex litigation. More about the law firm and its successes can be found at www.hbsslaw.com. A discussion of the Wall Street tip-off law can be found here. Visit the firm’s securities blog at www.meaningfuldisclosure.com.