After shares of Coinstar, Inc. lost more than 25% an investigation for investors in Coinstar, Inc. (NASDAQ:CSTR) common stock over possible securities laws violations by Coinstar and/or others was announced.

The investigation by a law firm concerns whether Coinstar, Inc. has violated federal securities laws by issuing false and misleading statements to its shareholders. Coinstars 12 months Total Revenue went from $534.44million in 2006 to $1,144.79million in 2009. Its Net Income went from $18.63million in 2006 to $53.64million in 2009. For the first three quarters in 2010 Coinstar, Inc. reported a combined 9months Total Revenue of $1,045.67million with a combined 9months Net Income of $39.31million. Shares of Coinstar, Inc. traded during 2006 as low as $21.90 per share and increased throughout 2007 to $34.49 per share. During 2008 CSTR shares continued to increase to as high as $38.10 per share in May 08 before falling to as low as $17.29 in December 08. During 2009 and 2010 CSTR shares were able to regain value and traded in November 2010 as high as $66.72 per share. Then on January 13, 2011 after the market closed Coinstar reported results for the fourth quarter and full year 2010 and lowered its guidance. Investors first learned that Coinstar, Inc.would earn as little as $0.65 per share for the quarter on revenues of only $391 million, and not the analysts consensus estimate of $0.84 per share, on revenues of $427 million. Shares of Coinstar fell from $57.60 on Jan13, 2011 to $41.50 per share on Jan 14, 2011.