Published: February 01, 2011
The Law Office of Robbins Umeda LLP Announces an Investigation of Coinstar, Inc.
SAN DIEGO - (BUSINESS WIRE) - Robbins
Umeda LLP has commenced an investigation into possible breaches of
fiduciary duty and other violations of the law by certain officers and
directors at Coinstar, Inc. ("Coinstar") (NASDAQGS: CSTR). Coinstar owns
and operates self-service coin-counting machines and installs and
operates RedBox kiosks that dispense DVDs. The company was founded in
1991 and is headquartered in Bellevue, Washington.
Robbins Umeda LLP's investigation concerns whether Coinstar's officers
and directors caused the company to issue materially false and
misleading statements regarding the company's revenue and earnings
guidance for 2010 and 2011. Specifically, the investigation concerns
whether these fiduciaries misled investors about the growth and
profitability of its RedBox DVD kiosk business, despite changes in the
DVD industry which required vendors to wait twenty-eight days before
obtaining movie titles from the movie studios.
On October 28, 2010, the officers and directors at Coinstar issued
positive revenue and earnings guidance for the fourth quarter of 2010,
including consolidated revenue projections of $415-$440 million and per
share earnings between $0.79 and $0.85 per share. As a result of these
projections, the company's value increased almost 25% over the prior
day's closing. However, on January 13, 2011, Coinstar announced earnings
for the fourth quarter and full year of 2010, in which investors learned
that the company would earn as little as $0.65 per share for the quarter
on revenues of $391 million, well below analysts' expectations and
previous guidance sponsored and endorsed by the company. Upon this news,
Coinstar's value dropped more than 30%.
If you own stock in Coinstar and would like more information about your rights
as a shareholder, please contact attorney Gregory E. Del Gaizo at
800-350-6003 or by e-mail at info@robbinsumeda.com.
Robbins Umeda LLP represents individual and institutional shareholders
in derivative, direct, and class action lawsuits. The law firm's skilled
litigation teams include former federal prosecutors, former defense
counsel from top multinational corporate law firms, and career shareholder
rights attorneys. Robbins Umeda LLP has helped its clients realize
more than $1 billion of value for themselves and the companies in which
they have invested. For more information, please go to http://www.robbinsumeda.com.
Attorney Advertising. Past results do not guarantee a similar outcome.
We welcome you to contact
us today to discuss your case.
Robbins Umeda LLP
Gregory E. Del Gaizo, 800-350-6003
info@robbinsumeda.com
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