Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Stamps.com, Inc. (“Stamps.com” or the “Company”) (NASDAQ:STMP) of the April 29, 2019 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Stamps.com stock or options between May 3, 2017 and February 21, 2019 and would like to discuss your legal rights, click here: www.faruqilaw.com/STMP. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com.
The lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of all those who purchased Stamps.com common stock between May 3, 2017 and February 21, 2019 (the “Class Period”). The case, Alan Grabisch v. Stamps.com, Inc. et al., No. 19-cv-01497 was filed on February 28, 2019, and has been assigned to Judge Manuel L. Real.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) the Company’s financial results depended on the manipulation of a USPS program that cost USPS an estimated $235 million per year; and (2) as a result, the Company’s business was unsustainable and its financial results were highly misleading.
On February 21, 2019, after the market closed, Stamps.com held a conference call to discuss its financial results from the 4th quarter of 2018 and fiscal year 2018 as well as its business outlook and “certain strategic items . . . that impact our business outlook for 2019.” On the call, Stamps.com CEO Kenneth McBride discussed the Company’s renewal talks with USPS over its revenue share agreement and claimed that Stamps.com: “will no longer be exclusive to the USPS and that’s nonnegotiable.” The Company further announced that, contrary to previous expectations of strong growth, 2019 revenue was expected to decline 5.4%.
On this news, the Company's stock price fell from $198.08 per share on February 21, 2019 to $83.65 per share on February 22, 2019--a $114.43 or 57.77% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Stamp.com’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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