The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of those who acquired Stamps.com Inc. (Stamps.com or the Company) (NASDAQ: STMP) securities during the period from May 3, 2017 through February 21, 2019 (the Class Period). Investors have until April 29, 2019 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The lawsuit alleges that Stamps.com made false and/or misleading statements and/or failed to disclose that: (i) the Companys financial results depended on the manipulation of a United States Postal Service (USPS) program that cost the USPS an estimated $235 million per year; and (ii) as a result, the Companys business was unsustainable, and its financial results were highly misleading.
On February 21, 2019, after the market closed, Stamps.com announced that the Company was discontinuing its key partnership with the USPS despite the fact that USPS-related business accounts for 87 percent of the Companys revenue. The Company further announced that 2019 revenue was expected to decline 5.4%.
On this news, Stamps.coms share price fell $114.43 per share or approximately 57.7%, to close at $83.65 on February 22, 2019.
If you acquired Stamps.com securities during the Class Period, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney at 212-371-6600, by email at [email protected], or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney is a New York-based plaintiffs law firm concentrating in securities, antitrust, and whistleblower litigation. The firms efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerneys website: www.kmllp.com.
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