NEW ORLEANS, LA--(Marketwire - January 30, 2011) - Kahn Swick & Foti, LLC ("KSF") and KSF partner, Former Attorney General of Louisiana, Charles C. Foti, Jr., announce the commencement of the firm's securities class action lawsuit against Coinstar, Inc. ("Coinstar" or the "Company") (
What You May Do
If you are a Coinstar shareholder and would like to discuss your legal rights and how this case might affect you and your right to recover for your economic loss, you may, without obligation or cost to you, e-mail or call KSF Managing Partner, Lewis Kahn (lewis.kahn@ksfcounsel.com), toll free, 877-515-1850, or via cell phone any time at 504-301-7900, or KSF Director of Client Relations, Neil Rothstein, Esq. (neil.rothstein@ksfcounsel.com), toll free at 877-694-9510, or via cell phone any time at 330-860-4092. If you wish to serve as a lead plaintiff in this class action by overseeing lead counsel with the goal of obtaining a fair and just resolution, you must request this position by application to the Court by March 25, 2011. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. KSF encourages both institutional and individual purchasers of Coinstar to contact the firm. The ultimate resolution of any securities class action is strengthened through the involvement of aggrieved shareholders and lead plaintiffs who have large financial interests. KSF also encourages anyone with information regarding Coinstar's conduct during the period in question to contact the firm, including whistleblowers, former employees, shareholders and others.
About the Lawsuit
Coinstar and certain of its Officers are charged with making a series of materially false and misleading statements related to the Company's business and operations in violation of the Securities Exchange Act of 1934.
In particular, the lawsuit 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.
About Kahn Swick & Foti, LLC
KSF, whose partners include the Former Louisiana Attorney General Charles C. Foti, Jr., is a law firm focused on securities class action and shareholder derivative litigation with offices in New York and Louisiana. KSF's lawyers have significant experience litigating complex securities class actions nationwide on behalf of both institutional and individual shareholders. Recent cases include In re Virgin Mobile USA IPO Litigation, 2:07-cv-05619-SDW-MCA (D. N.J.), Co-Lead Counsel, $19.5 Million Settlement; In re BigBand Networks, Inc Securities Litigation, 3:07-CV-05101-SBA (C.D. Cal.), Co-Lead Counsel, $11 million settlement; In re U.S. Auto Parts Networks, Inc. Securities Litigation, 2:07-cv-02030-GW-JC (C.D. Cal.),Lead Counsel, $10 million settlement. KSF is also federally court-appointed Co-Lead Counsel in THE shareholder derivative cases against AIG and Bank of America (Merrill Lynch merger) emanating from their recent multi-billion dollar economic declines.
To learn more about KSF, you may visit www.ksfcounsel.com.
Contact Information:
Contact:
Kahn Swick & Foti, LLC
Lewis Kahn, Managing Partner
877-515-1850
or after hours via cell phone 504-301-7900
lewis.kahn@ksfcounsel.com
206 Covington St.
Madisonville, LA 70447