Starz
SECURITIES FRAUD ALERT: The Law Firm of Andrews & Springer LLC Announces That A Securities Fraud Class Action Has Been Filed Against Starz - STRZA, STRZB
(Wilmington, DE) Andrews & Springer LLC, a boutique securities class action law firm focused on representing shareholders nationwide, announced today that a securities fraud class action lawsuit has been filed in the U.S. District Court, Central District of California, on behalf of investors of Starz (NASDAQ: STRZA and STRZB) (“Starz” or the “Company”) that held shares between August 1, 2014 and October 29, 2015 (the “Class Period”). If you purchased Starz securities during the Class Period, you may, no later than January 8, 2016, request that the Court appoint you lead plaintiff of the proposed class.
The lawsuit alleges that throughout the Class Period defendants issued materially false and misleading statements to investors and/or failed to disclose that: (1) Starz lacked adequate internal controls; (2) according to a former Starz senior executive, Starz's contract with Comcast Corporation was a result of illicit business practices.
On October 29, 2015, online magazine Deadline Hollywood issued an article disclosing that Starz's former Senior Vice President of Sales and Affiliate Marketing Keno Thomas filed a lawsuit (the "Thomas Action") against Starz and its Chief Executive Officer Christopher Albrecht, and Chief Revenue Officer Michael Thornton, among others. A copy of the complaint can be found here. Thomas’ complaint alleges that: (1) the contract between Comcast Corporation and the Company, entered into on or about April 2014, was the result of illicit business practices; (2) Thomas was ordered by the Company's senior management to fabricate revenue and subscriber information so that Thornton and Albrecht could present those falsified figures to the Company's Board of Directors; and (3) the Company retaliated against Thomas for refusing to fabricate revenue and subscriber information.
As a result of this news, Starz’s stock price fell approximately 9% (equivalent to $3.69 per share) on October 30, 2015, causing shareholders to incur millions in losses.