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 Companys 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 Companys 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 Companys 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 Companys 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 McBrides statements, USPS itself had decided to terminate its relationship with Stamps.com on account of the Companys 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 nations 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 firms 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 firms representation of investors, please visit http://www.lieffcabraser.com.
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Source/Contact for Media Inquiries Only
Sharon M. Lee
Cabraser Heimann & Bernstein, LLP