Starz investors may receive additional information about the case by clicking the link "Join this Class Action" above.
According to the complaint, Starz is purportedly a leading integrated global media and entertainment company. The company provides premium subscription video programming to U.S. multichannel video programming distributors, including cable operators, satellite television providers and telecommunications companies.
The complaint alleges that throughout the Class Period, the defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, the complaint alleges that the defendants made 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; and (3) as a result, Starz’s public statements were materially false and misleading at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
The Class Period commences on August 1, 2014, the day after Starz filed a quarterly report on Form 10-Q with the SEC for the quarter ended June 30, 2014 (the “Q2 2014 10-Q”), which was signed by defendants Albrecht and Macdonald. The Q2 2014 10-Q contained signed certifications pursuant to the Sarbanes-Oxley Act of 2002 by defendants Albrecht and Macdonald stating that the financial information contained in the Q2 2014 10-Q was accurate, all fraud was disclosed and any material changes to the company's internal control over financial reporting were disclosed.
On October 29, 2015, online magazine Deadline Hollywood revealed that the company’s former Senior Vice President of Sales and Affiliate Marketing Keno Thomas (“Thomas”) filed a lawsuit against the company and several of its subsidiaries, alleging among other things, that: the contract between Comcast Corporation and the company that was entered into on or about April 2014 was the result of illicit business practices committed by the Chief Revenue Officer Michael Thornton (“Thornton”) and defendant Gregory B. Maffei, and that Thomas was ordered by the company’s senior management, at the behest of Thornton, to fabricate revenue and subscriber information so that Thornton and defendant Albrecht could present those falsified figures to the company’s Board of Directors, which would allow them to have plausible deniability in the event the Board realized the revenue figures were fabricated. The company retaliated against Thomas for refusing to fabricate revenue and subscriber information.
Following this news, shares of STRZA fell $3.69 per share or over 9% from its previous closing price to close at $33.51 per share on October 30, 2015, and shares of STRZB fell $4.98 per share or over 13% to close at $32.73 per share on October 30, 2015.
If you are a member of the class described above, you may no later than January 8, 2016, move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP.
Kessler Topaz Meltzer & Check, LLP
James Maro, Esq.
Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll free) or 1-610-667-7706