CINCINNATI, Jan. 25, 2011 (GLOBE NEWSWIRE) -- Attorney Advertising -- The law firm of Statman, Harris & Eyrich, LLC, which has significant experience in class actions, announced today that a shareholder lawsuit alleging securities laws violations has been commenced in the United States District Court for the Western District of Washington on behalf of shareholders who purchased the common stock of Coinstar, Inc. ("Coinstar" or the "Company") (Nasdaq:CSTR) between October 28, 2010 and January 13, 2011, inclusive (the "Class Period"). Coinstar is a provider of automated retail business, including the Redbox® self-service DVD rental and Coinstar® self-service coin-counting brands.
The plaintiff in the case alleges that the Company and certain of its officers made 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. Specifically, the complaint alleges that the Company failed to disclose adverse factors affecting its business and projected financial results, such as: (1) declining sales as customers purchased fewer DVDs per transaction and poor inventory management; (2) lower sales of more expensive Blue-ray discs and poor title selection; (3) delay in availability of DVDs imposed by movie studios; and (4) competition from online video streaming providers.
Fourth quarter and full year 2010 results reported by defendants on January 13, 2011 revealed to shareholders that the Company 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 revenue of $427 million. As a result, the stock declined almost 30% in a single trading day, or almost $15.50 per share, to close at $41.50 per share, down from the prior day's closing price of $57.00.
If you purchased Coinstar, Inc. securities during the Class Period, you may request that the Court appoint you lead plaintiff. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not affected by your decision whether or not to serve as lead plaintiff.
If you wish to discuss this action or have any questions, please contact attorney Melinda Nenning at (513) 345-8181, Ext. 3095 or via e-mail at mnenning@statmanharris.com for further information without any obligation or cost to you.
Statman, Harris & Eyrich, LLC has offices in Chicago, Illinois; Cincinnati, Ohio; and Dayton, Ohio. www.statmanharris.com