Coinstar, Inc. Hit By Investor Lawsuit Over Alleged Securities Laws Violations
April 23, 2012 (Update) -- $6 million settlement proposed. According to the Notice:
If approved by the Court, the settlement will provide a Six Million ($6,000,000) cash settlement fund for the benefit of eligible investors (the “Settlement”) who purchased Coinstar common stock during the period from October 29, 2010 to February 3, 2011, inclusive, and were allegedly damaged thereby (the “Class”).
The Settlement resolves claims that Defendants (defined below) misled investors about Coinstar’s financial condition and business prospects; avoids the costs and risks of continuing the litigation, pays money to investors like you, and releases Defendants from liability.
Your legal rights are affected whether you act or do not act. Read this Notice carefully.
The Court will review the Settlement at the Settlement Hearing to be held on August 10, 2012.
January 25, 2011 -- An investor in shares of Coinstar, Inc. filed a lawsuit in in the United States District Court for the Western District of Washington in response to the recent stock drop of more than 25%. The plaintiff alleges Coinstar and others violated Federal Securities Laws between October 28, 2010 and January 13, 2011.
According to the class action complaint the plaintiff alleges on behalf of purchasers of Coinstar common stock between October 28, 2010 and January 13, 2011that Coinstar and certain of its Officers violated the Securities Exchange Act of 1934 by making between October 28, 2010 and January 13, 2011a series of materially false and misleading statements related to the Company's business and operations.
Coinstar’s 12 months Total Revenue went from $534.44million in 2006 to $1,144.79million in 2009. Its Net Income went from $18.63million in 2006 to $53.64million in 2009. For the first three quarters in 2010 Coinstar, Inc. reported a combined 9months Total Revenue of $1,045.67million with a combined 9months Net Income of $39.31million. Shares of Coinstar, Inc. traded during 2006 as low as $21.90 per share and increased throughout 2007 to $34.49 per share. During 2008 CSTR shares continued to increase to as high as $38.10 per share in May 08 before falling to as low as $17.29 in December 08. During 2009 and 2010 CSTR shares were able to regain value and traded in November 2010 as high as $66.72 per share. Then on January 13, 2011 after the market closed Coinstar reported results for the fourth quarter and full year 2010 and lowered its guidance. Investors first learned that Coinstar, Inc.would earn as little as $0.65 per share for the quarter on revenues of only $391 million, and not the analysts consensus estimate of $0.84 per share, on revenues of $427 million. Shares of Coinstar fell almost 30% from $57.60 on Jan13, 2011 to $41.50 per share on Jan 14, 2011.