Settlement of Karinski v. Stamps.com, Inc., et al.
The parties have reached a settlement of this action, pending in the United States District Court for the Central District of California. The settlement provides for the payment of $100 million for the benefit of eligible Class Members. Lead Plaintiff Indiana Public Retirement System alleged that throughout the Class Period (between May 3, 2017 and May 8, 2019, inclusive), Defendants violated §§10(b) and 20(a) of the Securities Exchange Act of 1934 by making false or misleading representations that Stamps.com Inc. (“Stamps.com” or the “Company”) had a strong relationship with the United States Postal Service (“USPS”) and that the USPS fully approved of the Company’s use of the reseller program. Lead Plaintiff further alleged that these false and misleading representations artificially inflated Stamps.com’s stock price and once the truth was revealed to the market, the Company’s stock price declined.
The Class consists of all persons who purchased or otherwise acquired Stamps.com common stock during the Class Period, and were damaged thereby. Excluded from the Class are Defendants and their immediate families, the officers and directors of the Company, at all relevant times, members of their immediate families, and their legal representatives, heirs, successors or assigns, and any entity in which Defendants have or had a controlling interest. Also excluded from the Class are those Persons who exclude themselves by submitting a request for exclusion that is accepted by the Court.
The settlement was approved by the Court on March 18, 2022.
If you have any questions about the settlement or the litigation, please contact Rick Nelson at 1-800-449-4900.