WELCOME TO THE STAMPS.COM SETTLEMENT WEBSITE
| SCHEDULING NOTICE and ORDER by Judge Michael W. Fitzgerald. Pursuant to General Order 21-08, Order of the Chief Judge 21-124, and Rule 78 of the Federal Rules of Civil Procedure and Local Rule 7-15, the Court finds the LEAD PLAINTIFF'S MOTION FOR: (1) FINAL APPROVAL OF CLASS ACTION SETTLEMENT; (2) APPROVAL OF PLAN OF ALLOCATION; (3) AWARD OF ATTORNEYS' FEES AND EXPENSES; AND (4) AWARD TO LEAD PLAINTIFF [202] appropriate for submission on the papers without oral argument. Accordingly, the hearing set on this motion for January 24, 2022 is vacated and taken off calendar. If the Court determines that a hearing is necessary, one will be reset at a later date. IT IS SO ORDERED.THERE IS NO PDF DOCUMENT ASSOCIATED WITH THIS ENTRY. |
This website has been established to provide general information related to the proposed settlement of the case known as Karinski v. Stamps.com, Inc., et al., Case No. 2:19-cv-01828-MWF-SK (the "Litigation"), pending before the United States District Court for the Central District of California (the "Court"). The capitalized terms used on this website, and not otherwise defined, shall have the same meanings ascribed to them in the Stipulation of Settlement (the "Stipulation") dated August 16, 2021, which can be found and downloaded by clicking on the Case Documents tab above. Your rights may be affected by the Settlement if you purchased or otherwise acquired Stamps.com Inc. ("Stamps.com" or the "Company") common stock between May 3, 2017 and May 8, 2019, inclusive (the “Class Period”).
The entity that leads the Litigation, Indiana Public Retirement System, is referred to as the “Lead Plaintiff.” The company and individuals, Stamps.com, Kenneth McBride, Kyle Huebner and Jeff Carberry, being sued are called the Defendants.
The law firm of Robbins Geller Rudman & Dowd LLP (“Lead Counsel”) represent Class Members. Class Members will not be charged for these lawyers. They will be paid from the Settlement Fund to the extent the Court approves their application for fees and expenses.
WHAT IS THIS LAWSUIT ABOUT?
As more fully described in the Notice of Pendency and Settlement of Class Action (the "Notice"), this Litigation arises under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and alleges that during the period from May 3, 2017 through May 8, 2019, inclusive (the “Class Period”), Defendants Stamps.com, Kenneth McBride, Kyle Huebner, and Jeff Carberry made materially false and misleading statements about Stamps.com’s business performance and conditions. More specifically, Lead Plaintiff alleges that during the Class Period, Defendants misled investors regarding Stamps.com’s “strong” relationship with the United States Postal Service (“USPS”) and that the USPS was “‘very happy’” with Stamp.com’s business practices.
Lead Plaintiff alleges that during the Class Period, Defendants knew or recklessly disregarded that Stamps.com’s relationship with the USPS was strained due to the Company’s abuse of the USPS Reseller Program. Lead Plaintiff alleges that Defendants concealed these facts from investors and that this scheme artificially inflated Stamps.com’s stock price during the Class Period. On February 21, 2019, Stamps.com announced the end of an agreement with the USPS whereby the USPS compensated Stamps.com for certain types of postage in exchange for exclusivity. The Company’s stock price plummeted $114 per share on record trading volume of 13.7 million shares, a decline of over 57%. Then, on May 8, 2019, Stamps.com announced it was lowering its earnings guidance because of potential unfavorable negotiations and terminations of certain contracts between the USPS and the Company’s reseller partners. As a result of the news, the Company’s stock price dropped another $46 per share on record trading volume of 16.8 million shares, a decline of over 56%.
On August 5, 2019, Lead Plaintiff filed its Consolidated Class Action Complaint for Violations of the Federal Securities Laws (the “Complaint”). On October 4, 2019, Defendants moved to dismiss this Complaint, which was opposed by Lead Plaintiff. On January 17, 2020, the Court granted in part and denied in part Defendants’ motion to dismiss the Complaint, holding that Lead Plaintiff had adequately alleged that Defendants made false or misleading representations that Stamps.com had a strong relationship with the USPS and that the USPS fully approved Stamps.com’s use of the Reseller Program. Defendants filed their answer to the Complaint on January 31, 2020.
Lead Plaintiff and Defendants began formal discovery in April 2020. The Settling Parties served written discovery on each other, and issued subpoenas to third parties. At the time settlement was reached, Lead Plaintiff had collected hundreds of thousands of pages of documents from Defendants and various third parties. Similarly, Defendants collected thousands of pages of documents from Lead Plaintiff, its investment managers and other third parties.
In the course of the Litigation, the Settling Parties engaged the services of Daniel Weinstein, a nationally recognized mediator. The Settling Parties participated in an in-person mediation session with Judge Weinstein on December 1, 2020. The Settling Parties did not reach an agreement to settle the Litigation at the mediation and continued litigating the case. The Settling Parties participated in a second in-person mediation session with Judge Weinstein on March 23, 2020. While the Settling Parties did not reach an agreement to settle the Litigation at this second mediation, they continued settlement negotiations with the assistance of Judge Weinstein. Judge Weinstein subsequently provided the Settling Parties with a Mediator’s Proposal to settle the Litigation for $100,000,000, which the Settling Parties accepted on May 28, 2021.
WHAT DOES THE SETTLEMENT PROVIDE?
The Settlement, if approved, will result in the creation of a cash settlement fund of $100,000,000.00 (the “Settlement Amount”). The Settlement Amount and any interest it earns thereon is the “Settlement Fund.” The Settlement Fund, after deduction of Court-approved attorneys’ fees and expenses, Notice and Administration Expenses, Taxes, and any other fees or expenses approved by the Court, is the “Net Settlement Fund.” If the Settlement is approved by the Court, the Net Settlement Fund will be distributed to eligible Authorized Claimants in accordance with the proposed Plan of Allocation.
ADDITIONAL INFORMATION
Although the information in this website is intended to assist you, it does not replace the information contained in the Notice and Stipulation, both of which can be found and downloaded by clicking on the Case Documents tab above. We recommend that you read the Notice and other relevant case documents carefully.
YOUR LEGAL RIGHTS AND OPTIONS IN THIS SETTLEMENT
| REMAIN A MEMBER OF THE CLASS AND SUBMIT A CLAIM FORM |
This is the only way to be potentially eligible to receive a payment. If you wish to obtain a payment as a Member of the Class, you will need to file a claim form (the “Claim Form” or “Proof of Claim Form”), which can be found and downloaded by clicking on the Case Documents tab above, postmarked no later than February 2, 2022. |
| EXCLUDE YOURSELF FROM THE CLASS (OPT OUT) BY SUBMITTING A WRITTEN REQUEST FOR EXCLUSION |
Receive no payment pursuant to this Settlement. This is the only option that allows you to ever potentially be part of any other lawsuit against any of the Defendants or the other Released Defendant Parties concerning the Released Plaintiff’s Claims. Should you elect to exclude yourself from the Class, you should understand that Defendants and the other Released Defendant Parties will have the right to assert any and all defenses they may have to any claims that you may seek to assert, including, without limitation, the defense that any such claims are untimely under applicable statutes of limitations and statutes of repose. Exclusions must be received on or before January 3, 2022. |
| OBJECT TO THE SETTLEMENT |
Write to the Court about your view on the Settlement, or why you don’t think the Settlement is fair to the Class. If you do not exclude yourself from the Class, you may object to the Settlement, the Plan of Allocation, or the request for attorneys’ fees and litigation expenses. You must still submit a Claim Form in order to be potentially eligible to receive any money from the Settlement Fund. Objections must be received by the Court and counsel on or before January 3, 2022. |
| GO TO THE HEARING ON JANUARY 24, 2022, AT 10:00 A.M., AND FILE A NOTICE OF INTENTION TO APPEAR |
Ask to speak in Court about the fairness of the Settlement, the proposed Plan of Allocation, or the request for attorneys’ fees and litigation expenses. Requests to speak must be received by the Court and counsel on or before January 3, 2022. |
| DO NOTHING |
Get no payment. Remain a Class Member. Give up your rights. |
IMPORTANT DATES AND DEADLINES
| Submit Claim Form: |
February 2, 2022 |
| File Objection: |
January 3, 2022 |
| Request Exclusion: |
January 3, 2022 |
| File Notice of Intention to Appear: |
January 3, 2022 |
| Court Hearing on Fairness of Settlement: |
January 24, 2022, at 10:00 a.m. |