MINNEAPOLIS, March 1, 2011 (GLOBE NEWSWIRE) -- Lockridge Grindal Nauen P.L.L.P. announces that a class action has been commenced in the United States District Court for the Western District of Washington on behalf of purchasers of Coinstar, Inc. ("Coinstar" or the "Company") (Nasdaq:CSTR) publicly traded securities during the period October 28, 2010 through January 13, 2011 (the "Class Period").
If you are a member of the proposed Class, you may move the Court to serve as a lead plaintiff for the Class on or before March 25, 2011. You do not need to be a lead plaintiff in order to share in any recovery that may be obtained.
The Complaint alleges that Coinstar failed to disclose 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, including: 1) declining sales as customers purchased fewer DVDs, and as poor inventory management and controls resulted in the Company removing material amounts of old inventory early in the fourth quarter; 2) lower sales of more expensive "Blue-ray" DVDs and poor title selection were resulting in lower overall sales; 3) the 28-day delay movie studios imposed on Coinstar was adversely affecting the Company, well before the 2010 fourth quarter; and 4) competition from online video streaming providers such as Netflix was adversely impacting the Company more acutely than it had revealed.
The truth was revealed on January 13, 2011, when investors learned that Coinstar would earn only $0.65 per share for the fourth quarter 2010 on revenues of only $391 million, well below the consensus analyst estimate of $0.84 per share on revenues of $427 million. The Defendants also explained that these factors would continue to have a materially adverse impact on the Company's business, earnings and gross margins throughout fiscal year 2011. On this news, the Company stock price suffered an immediate and adverse impact as it collapsed over 27% in a single trading day, or $15.46 per share in a single day, to close at $41.50.
If you purchased Coinstar, Inc. stock during the Class Period, or have any questions concerning this notice or your rights with respect to this matter, please contact:
CONTACT: Karen H. Riebel, Esq. (khriebel@locklaw.com) Lockridge Grindal Nauen P.L.L.P. 100 Washington Avenue South, Suite 2200 Minneapolis, MN 55401 (612) 339-6900
