Securities fraud class action litigation has been filed on behalf of investors in the securities of Stamps.com, Inc. (“Stamps” or the “Company”) (Nasdaq: STMP). If you purchased or otherwise acquired the securities of Stamps between May 3, 2017 and Febraury 21, 2019, inclusive (the “Class Period”), you may move the court for appointment as lead plaintiff by no later than April 29, 2019.
You may retain Lieff Cabraser Heimann & Bernstein, LLP, or other attorneys, as your counsel in the actions. Recognized by the National Law Journal as one of the nation’s top plaintiffs’ law firms, Lieff Cabraser is committed to safeguarding the rights of investors and upholding the integrity of the market. We have significant experience and a successful track record of representing institutional and individual investors in securities and financial fraud litigation.
Stamps investors may choose to have Lieff Cabraser review their claim by completing the contact form below. You can also call Sharon M. Lee of Lieff Cabraser at 1-800-541-7358 to discuss the litigation.
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 Company’s 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 Company’s 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 Company’s 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 Company’s 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 McBride’s statements, USPS itself had decided to terminate its relationship with Stamps.com on account of the Company’s increasing demands and abuses of the reseller program.
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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 nation’s 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 firm’s “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.” In late 2016, Benchmark Litigation named Lieff Cabraser one of the “Top 10 Plaintiffs’ Firms in America.”