Bloomberg Law
March 1, 2019, 4:05 PM

Stamps.com Sued Over End of USPS Partnership, Stock Drop

Jennifer Bennett
Associate Legal Intelligence Reporter

Stamps.com misled investors about the sustainability of its business, which depended on its abuse of a USPS resale program, a new lawsuit alleges.

The online shipping firm didn’t disclose that its financial results relied on the “manipulation” of a U.S. Postal Service program, jeopardizing their partnership, the would-be class complaint filed Feb. 28 in the U.S. District Court for the Central District of California said.

Stamps.com announced Feb. 21 that it was ending its exclusive partnership with the USPS, which accounted for 87 percent of its revenue, so it could provide customers with a wider variety of shipping options, the ...

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