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Press release from PR Newswire

Green Mountain Coffee Roasters Target of Investigation by Investor-rights Law Firm Hagens Berman

Thursday, December 01, 2011

Green Mountain Coffee Roasters Target of Investigation by Investor-rights Law Firm Hagens Berman16:21 EST Thursday, December 01, 2011BERKELEY, Calif., Dec 1, 2011 /PRNewswire/ -- Hagens Berman is investigating Green Mountain Coffee Roasters, Inc. (NASDAQ: GMCR) ("GMCR" or the "Company") following the filing of a class-action lawsuit. Green Mountain's shares slumped almost 25 percent after analyst David Einhorn warned on Oct. 17 that the company's business model was weaker than most thought and that its accounting was suspect. Then, on Nov. 9, 2011, GMCR announced disappointing earnings results and skyrocketing inventory. On this news, GMCR's shares plummeted an additional 40 percent, from a close of $67.02 on Nov. 9 to a close of $40.89 on November 10. Investors with losses exceeding $1 million who purchased GMCR common stock between Feb. 2, 2011, and Nov. 11, 2011, or who acquired stock as part of a public offering on or about May 5, 2011, are encouraged to contact Partner Reed R. Kathrein by calling (510) 725-3000, or by email at GMCR@HBSSlaw.com. Investors can also contact the firm online and learn more about the case by visiting www.HBSSlaw.com/GMCR.The focus of the lawsuit and the firm's investigation is whether GMCR violated the federal securities laws by hiding or moving inventory. The filed class-action lawsuit alleges that GMCR manipulated its revenue reports and falsified sales orders, using its fulfillment vendor, Mblock, to store surplus product while materially overstating the company's revenue. During the period of the complaint, insiders sold hundreds of millions of dollars worth of GMCR stock and raised more funds from public offerings."We spoke to a witness last year who made similar allegations that Mblock helped GMCR hide inventory. However, we believed those shenanigans were in the past. If indeed they continued at Mblock, despite the opening of an investigation by the SEC last September, then current management has more guts than we have seen since Madoff," said Mr. Kathrein. "Obviously, if the allegations are true, there are employees and former employees who know more, and we hope they will come forward to assist us in our investigation."Investors who desire to move to be a lead plaintiff in the class action litigation have until Jan. 30, 2012 to do so.Persons with knowledge that may help the investigation are encouraged to contact the firm. The SEC recently finalized new rules as part of its implementation of the whistleblower provisions in the Dodd-Frank Wall Street Reform Bill. The new rules protect whistleblowers from employer retaliation and allow the SEC to reward those who provide information leading to a successful enforcement with up to 30 percent of the recovery. About Hagens BermanSeattle-based Hagens Berman Sobol Shapiro LLP is an investor-rights class-action law firm with offices in 10 cities. In addition to investors, the firm represents whistleblowers, workers and consumers in complex litigation. More about the law firm and its successes can be found at www.hbsslaw.com. The firm's securities law blog is at www.meaningfuldisclosure.com. SOURCE Hagens Berman Sobol Shapiro LLP