STMP INVESTORS ALERT: Lieff Cabraser Announces Securities Class Action Against Stamps.com, Inc.
March 27 2019 - 12:00PM
Business Wire
The law firm of Lieff Cabraser Heimann & Bernstein, LLP
announces that class action litigation has been filed on behalf of
investors who purchased or otherwise acquired the securities of
Stamps.com, Inc. (“Stamps” or the “Company”) (Nasdaq: STMP) between
May 3, 2017 and February 21, 2019, inclusive (the “Class
Period”).
If you purchased or otherwise acquired Stamps securities during
the Class Period, you may move the Court for appointment as lead
plaintiff by no later than April 29, 2019. A lead plaintiff is a
representative party who acts on behalf of other class members in
directing the litigation. Your share of any recovery in the actions
will not be affected by your decision of whether to seek
appointment as lead plaintiff. You may retain Lieff Cabraser, or
other attorneys, as your counsel in the actions.
Stamps investors who wish to learn more about the litigation and
how to seek appointment as lead plaintiff should click here or
contact Sharon M. Lee of Lieff Cabraser toll-free at
1-800-541-7358.
Background on the Stamps Securities Class Litigation
Stamps, headquartered in El Segundo, California, is a provider
of Internet-based mailing and shipping solutions in the United
States. Under the Stamps and Endicia brands, Stamps customers use
United States Postal Service (“USPS”) services to mail and ship
mail pieces and packages through the USPS.
The action alleges that Defendants made false and/or misleading
statements and/or failed to disclose that: (i) the Company’s
financial results relied on the manipulation of a USPS program that
cost USPS an estimated $235 million per year; and (ii) as a result,
the Company’s business was unsustainable and its financial results
were misleading.
After the market closed on February 21, 2019, Stamps held a
conference call to discuss its financial results from the 4th
quarter of 2018 and fiscal year 2018. On the call, the Company’s
Chairman and Chief Executive Officer Kenneth McBride stated that
Stamps had decided to discontinue its shipping partnership with the
USPS, even though business related to the USPS accounts for 87% of
the Company’s revenue. Additionally, Stamps announced that 2019
revenue was expected to decline 5.4%. On this news, the price of
Stamps’ stock dropped $114.43, or 57.77% from a closing price of
$198.08 on February 21, 2019, to close at $83.65 on February 22,
2019, on extremely elevated trading volume.
On February 26, 2019, reports surfaced that, contrary to
McBride’s statements, USPS itself had decided to terminate its
relationship with Stamps.com on account of the Company’s increasing
demands and abuses of the reseller program.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San
Francisco, New York, and Nashville, is a nationally recognized law
firm committed to advancing the rights of investors and promoting
corporate responsibility.
The National Law Journal has recognized Lieff Cabraser as one of
the nation’s top plaintiffs’ law firms for fourteen years. In
compiling the list, the National Law Journal examines recent
verdicts and settlements and looked for firms “representing the
best qualities of the plaintiffs’ bar and that demonstrated unusual
dedication and creativity.” Law360 has selected Lieff Cabraser as
one of the Top 50 law firms nationwide for litigation, highlighting
our firm’s “laser focus” and noting that our firm routinely finds
itself “facing off against some of the largest and strongest
defense law firms in the world.” Benchmark Litigation has named
Lieff Cabraser one of the “Top 10 Plaintiffs’ Firms in
America.”
For more information about Lieff Cabraser and the firm’s
representation of investors, please visit
http://www.lieffcabraser.com.
This press release may be considered Attorney Advertising in
some jurisdictions under the applicable law and ethical rules.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190327005575/en/
Source/Contact for Media Inquiries OnlySharon M. LeeLieff
Cabraser Heimann & Bernstein, LLPTelephone: 1-800-541-7358
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