Class Period: Oct 28, 2010 to Feb 3, 2011
Lead Plaintiff Deadline: Mar 25, 2011 + Deadline passed
Summary of Case:
A securities class action has been filed against Coinstar, Inc. (CSTR) ("Coinstar" or the "Company") on behalf of all securities purchasers from October 28, 2010 through January 13, 2011, inclusive ("Class Period") in the United States District Court for the Western District of Washington.
The complaint 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 purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.