NEW YORK, April 23, 2019 (GLOBE NEWSWIRE) -- Bernstein Liebhard LLP, a nationally acclaimed investor rights law firm, announced today that less than one week remains to make a motion for lead plaintiff in a securities class action lawsuit alleging claims on behalf of those who purchased the securities of Stamps.com, Inc. (“Stamps.com” or the “Company”) (STMP) between May 3, 2017 and February 21, 2019, both dates inclusive (the “Class Period”). The lawsuit seeks to recover Stamps.com shareholders’ investment losses. The case is pending in the United States District Court for the Central District of California and alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and SEC Rule 10b-5.
According to the lawsuit, throughout the Class Period, Defendants made misleading statements and failed to disclose that: (1) the Company’s financial results depended on the manipulation of a United States Postal Service (“USPS”) program that cost USPS an estimated $235 million per year; and (2) as a result, the Company’s business was unsustainable.
On February 21, 2019, after the market closed, Stamps.com held a conference call to discuss its financial results for 4Q18 and fiscal year 2018. On the call, the Company’s Chairman and CEO Kenneth McBride surprised the market by announcing that the Company was discontinuing its shipping partnership with USPS despite the fact that USPS-related business accounted for 87% of the Company’s revenue. The Company also announced that 2019 revenue was expected to decline 5.4%.
On this news, the Company’s stock plummeted almost 60%, causing investors tremendous losses.
If you wish to serve as lead plaintiff, you must move the Court no later than April 29, 2019. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery does not require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
If you purchased Stamps.com securities, and/or would like to discuss your legal rights and options, please visit https://www.bernlieb.com/cases/stamps-com-inc-stmp-lawsuit-class-action-fraud-stock-113/ or contact Joe Seidman toll free at (877) 779-1414 or email@example.com.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for ten consecutive years.
You can obtain a copy of the complaint from the clerk of the court for the United States District Court for the Central District of California.
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Joseph R. Seidman, Jr.
Bernstein Liebhard LLP
SOURCE Bernstein Liebhard LLP