After Stock Market Debacle, Stamps.com Agrees To End Class Action Lawsuit, Enters Into Settlement Agreement With Complainant
Investors of Stamps.com are slated to celebrate a legal victory on their side as Stamps has reportedly agreed to enter into a settlement agreement with the case plaintiffs and has promised to pay $30 million to end the legal accusations thrown against them.
Stamps.com To Pay Up $30 Million To Company Investors
Per online reports, Stamps.com and other defendants named in the Stamps.com Class Action Lawsuit have decided to follow the plaintiff Macomb County Employees’ Retirement System’s terms of the settlement in late July 2021.
Stamps.com and others have agreed to settle instead of further pursuing the litigation filed against them in court. It is reported that the $30 million settlement fund will be used for different reforms. Investors, through their legal representatives, are asking to have a share of $6.9 million in the settlement proceeds.
The recent development is the latest addition to the legal saga between Stamps.com and its investors after the latter was accused of taking advantage of their working relationship with the USPS (United States Postal Service).
It is said that Stamps.com allegedly resold products by the USPS to different small volume delivery companies. This is said to be a direct violation of the agreement between the two companies.
Tumbling Stocks Drove Investors To Filing A Case
Soon after the concern was found out by USPS authorities, they have decided to cut off business ties with Stamps.com. What followed was a great dip in Stamps.com’s stocks, tallying up to a 58% decrease, which ended up hurting their company investors.
A following botched corporate move to save itself from ruin further doubled down on Stamps.com’s stocks, resulting in another 56% slash on its stock prices.
The Stamps.com Class Action Lawsuit’s complainant detailed that insider trading was rampant in the company and that Stamps.com sold artificially inflated and manipulated corporate stocks amounting to $190 million that were a result of the debacles the company faced after the scandal with USPS broke out to the public.
Company investors are asked to standby for updates as this is still an ongoing concern. We will continue to cover this settlement case’s developments and report on it as soon as they are made available to the public.
Stamps.com is a web-based company known for providing online postage services to many different clients. According to the company’s official website, Stamps.com primarily caters its products and services to small enterprises and home offices across the country. Just recently, Stamps.com was working with the USPS before the whole insider trading scandal broke off.
Editor’s Note on Stamps.com Settlement 2021:
This article features the latest class action settlement details involving Internet postage service Stamps.com and one of their investors who filed a class-action lawsuit against them for allegedly conducting insider trading activities deemed illegal.
Case Name(s) & No.: Macomb County Employees’ Retirement System v. Kenneth McBride, et al.; Case No.: 2019-0658
Jurisdiction: State of Delaware’s Court of Chancery
Products/Services Involved: Stock Prices
Allegation(s): Stamps.com’s illegal practices have caused a ripple effect that ended up hurting their company investors’ finances in the stock market.
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