Class Action Filed Against Coinstar Inc. on Behalf of Shareholders

A class action lawsuit was filed in the United States District Court for the Western District of Washington on behalf of purchasers or other acquirers of Coinstar, Inc. CSTR securities between October 28, 2010 and February 3, 2011, inclusive. Specifically, the Complaint alleges that, throughout the Class Period, Defendants materially misled the market to believe that: (i) Coinstar was operating according to plan; (ii) its revenues were not adversely affected by the 28-day delay imposed on the Company by several movie studios in late April 2010; (iii) the Company was effectively managing its inventory; and (iv) Coinstar maintained adequate systems of internal operational and financial controls, such that Coinstar's public statements and reported guidance was true, accurate, and reliable. However, as alleged in the Complaint, the Company, actually had, among other things: (i) decreased sales to customers as a result of the 28-day delay; and (ii) poor inventory management and controls resulting in the removal of material amounts of old inventory and an overstock of higher priced “Blue-ray” DVDs. The Complaint alleges that as a result of these problems, on February 3, 2011, the Company reported that its financial results for its Fourth Quarter and full year 2010 results would be well below its previously announced guidance and analyst expectations. The Complaint further alleges that as a result of Defendants' actions, plaintiff and the Class were damaged.