RM LAW, P.C. announces that a class action lawsuit has been filed on behalf of all persons or entities that purchased Stamps.com Inc. (“Stamps.com” or the “Company”) (NASDAQ: STMP) between May 3, 2017 and February 21, 2019, inclusive (the “Class Period”).
Stamps.com shareholders may, no later than April 29, 2019, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of Stampts.com and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (844) 291-9299 or to sign up online, click here.
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934.
The Complaint filed in this class action alleges that Defendants made materially false and misleading statements and/or failed 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, Stamps.com announced that its key partnership with the U.S. Postal Service ended. On an earnings call, Stamps.com’s chairman and Chief Executive Officer Kenneth Thomas McBride stated that, “We will no longer be exclusive to the USPS and that’s non-negotiable.” USPS-related business accounts for 87 percent of the Company’s revenue. The Company further announced that 2019 revenue was expected to decline 5.4%. On this news, the Company’s stock price fell $114.43, or nearly 58%, to close at $83.65 on February 22, 2019, thereby injuring investors.
If you are a member of the class, you may, no later than April 29, 2019, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as “lead plaintiff.” Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain RM LAW, P.C. or other counsel of your choice, to serve as your counsel in this action.