Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC (“KSF”), announces that KSF has commenced an investigation into Stamps.com, Inc. (NasdaqGS: STMP).
On February 21, 2019, the Company announced its 4Q and FY 2018 financial results, also disclosing that it had terminated its shipping partnership with the U.S. Postal Service (“USPS”), a vital relationship that accounted for approximately 87% of the Company’s revenue, and that revenue for 2019 was expected to decrease by 5.4%. Subsequently, it was reported that USPS itself had terminated the relationship with the Company on December 31, 2018 due to its serial abuse of the USPS’ reseller program.
Thereafter, the Company and certain of its executives were sued in a securities class action lawsuit, charging them with failing to disclose material information during the Class Period, violating federal securities laws. Recently, the court presiding over the case denied the Company’s motion to dismiss, allowing the case to move forward.
KSF’s investigation is focusing on whether Stamps.com’s officers and/or directors breached their fiduciary duties to Stamps.com shareholders or otherwise violated state or federal laws.