SOURCE: Brower Piven, A Professional Corporation

February 08, 2011 17:40 ET

Brower Piven Announces the Filing of a Class Action Lawsuit Against Coinstar, Inc. Expanding the Class Period to Include October 28, 2010 Through February 3, 2011 and Encourages Investors Who Have Substantial Financial Losses From Investment in Coinstar, Inc. to Inquire About the Lead Plaintiff Position in Securities Fraud Class Action Lawsuit Before the March 25, 2011 Lead Plaintiff Deadline

STEVENSON, MD--(Marketwire - February 8, 2011) - Brower Piven, A Professional Corporation announces that a class action lawsuit has been commenced in the United States District Court for the Western District of Washington on behalf of purchasers of the common stock of Coinstar, Inc. ("Coinstar" or the "Company") (NASDAQ: CSTR) during the period between October 28, 2010 and February 3, 2011, inclusive (the "Class Period").

No class has yet been certified in the above action. Members of the Class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. If you wish to choose counsel to represent you and the Class, you must apply to be appointed lead plaintiff no later than March 25, 2011 and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement and how much of a settlement to accept for the Class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the Company during the Class Period. You are not required to have sold your shares to seek damages or to serve as a Lead Plaintiff.

The complaint accuses the defendants of violations of the Securities Exchange Act of 1934 by virtue of the Company's failure to disclose during the Class Period that customers were buying fewer DVDs per purchase; poor inventory management and controls resulted in the Company removing material amounts of old inventory early in 4Q; lower sales of more expensive "Blue-ray" DVDs and poor title selection was resulting in lower overall sales; the 28-day delay movie studios imposed on Coinstar was adversely affecting sales; and competition from online video streaming providers such as Netflix was having a significant adverse impact on revenue. According to the complaint, after, on January 13, 2011, the Company reported results for the fourth quarter and full year 2010, shareholders first learned that the Company would earn as little as $.65 per share for the quarter on revenues of only $391 million, and not the analysts' consensus estimate of $.84 per share, on revenue of $427 million, the value of Coinstar stock declined significantly.

If you have suffered a net loss for all transactions in Coinstar, Inc. common stock during the Class Period, you may obtain additional information about this lawsuit and your ability to become a lead plaintiff by contacting Brower Piven at, by email at, by calling 410/415-6616, or at Brower Piven, A Professional Corporation, 1925 Old Valley Road, Stevenson, Maryland 21153. Attorneys at Brower Piven have combined experience litigating securities and class action cases of over 50 years. If you choose to retain counsel, you may retain Brower Piven without financial obligation or cost to you, or you may retain other counsel of your choice. You need take no action at this time to be a member of the class.

Contact Information

    Charles J. Piven
    Brower Piven, A Professional Corporation
    Stevenson, Maryland
    Email Contact