On August 10, 2012, the Honorable Marsha J. Pechman of the United States District Court for the Western District of Washington granted final approval to a settlement in the amount of $6 million in cash, plus interest, in the class action In re Coinstar Inc. Sec. Litig., No. C11-133 MJP.
Labaton Sucharow is the Court-appointed lead counsel for lead plaintiff the Employees' Retirement System of the State of Rhode Island and the class.
This settlement resolves claims against Coinstar, Inc. ("Coinstar"), Paul Davis, and J. Scott Di Valerio (collectively, "defendants").
Lead plaintiff, on behalf of the class, alleges that defendants made material misstatements and omissions in connection with Coinstar's publicly released revenue and earnings guidance for the fourth quarter of 2010 as well as the impact in the fourth quarter 2010 from agreements with certain studios to delay new release movies to Coinstar for 28 days from their release through other outlets, seasonality, slow Blue-ray DVD sales, and the weak slate of fourth quarter 2010 titles, in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, and that this had the effect of artificially inflating the price of Coinstar's common stock.
If you purchased the common stock of Coinstar from October 29, 2010 to February 3, 2011, inclusive, and were allegedly damaged thereby, you may be eligible to recover if you submit a Proof of Claim and Release form with supporting documents by August 21, 2012.
The deadline for objecting to the settlement or for seeking exclusion from the class has passed. A settlement fairness hearing was held on August 10, 2012 before Judge Pechman at the United States Courthouse, United States District Court, Western District of Washington, 700 Stewart Street, Suite 14229, Seattle, WA 98101.
Copies of relevant settlement documents can be accessed by clicking on the links to the right.