Coinstar, Inc. is an American company that operates coin-cashing and DVD-dispensing machines or kiosks.
According to the Complaint filed January 24, 2011, 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.
On April 19, 2011, the Court granted Rhode Island’s motion for appointment as lead Plaintiff and approved of its selection of lead Counsel. On June 17, 2011, the lead Plaintiff filed a consolidated amended Complaint. The Defendants responded by filing a motion to dismiss on July 15, 2011.
On April 9, 2012, the Court issued a preliminary approval order providing for notice and hearing in connection with the proposed class action Settlement.
On August 23, 2012, the Court entered an amended and revised final order and judgment in this case.
On August 23, 2012, the Court issued an amended order awarding attorneys' fees and expenses.
