Press release from Business Wire
Lieff Cabraser Heimann & Bernstein, LLP Announces Class Action Lawsuit Against Green Mountain Coffee Roasters, Inc.
Wednesday, December 07, 2011
Lieff Cabraser Heimann & Bernstein, LLP Announces Class Action Lawsuit Against Green Mountain Coffee Roasters, Inc.10:00 EST Wednesday, December 07, 2011 SAN FRANCISCO (Business Wire) -- The law firm of Lieff Cabraser Heimann & Bernstein, LLP is investigating potential illegal conduct as alleged in a class action lawsuit brought on behalf of purchasers of the common stock of Green Mountain Coffee Roasters, Inc. (“GMCR” or the “Company”) (Nasdaq: GMCR) between February 2, 2011 and November 9, 2011, inclusive (the “Class Period”), including purchasers of GMCR's common stock pursuant and/or traceable to the Company's public offering on or around May 5, 2011 (the “Offering”). If you purchased GMCR common stock during the Class Period and/or pursuant or traceable to the Offering, you may move the Court for appointment as lead plaintiff by no later than January 30, 2012. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the action will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action. GMCR shareholders who wish to learn more about the action and how to seek appointment as lead plaintiff should click here or contact Sharon Lee of Lieff Cabraser toll free at (800) 541-7358. Background on the GMCR Securities Class Litigation The action is brought against GMCR, certain of its officers and directors, and the underwriters of the Offering for violations of the Securities Act of 1933 and the Securities Exchange Act of 1934. GMCR, based in Waterbury, Vermont, is a leader in the specialty coffee and coffee maker businesses. GMCR produces coffee, tea and hot cocoa from its family of brands, including Tully's Coffee®, and manufactures the popular Keurig single-cup brewing systems that use “K-Cup” portion packs. The complaint alleges that, during the Class Period, certain defendants systematically and strategically manipulated GMCR's revenues. To do so, defendants used one of GMCR's key fulfillment vendors, M. Block & Sons (“MBlock”), as a captive warehouse to harbor expired, excessively manufactured, or otherwise unsold product. Pursuant to the fraudulent scheme, GMCR improperly booked revenues associated with falsified sales orders for hundreds of millions of dollars in K-Cup and Keurig Brewer products, which resulted in the material overstatement of the Company's profits, inventory, and product demand levels. GMCR also fraudulently overstated its assets in proportion to its fictitious revenues by carrying the proceeds of phantom sales as assets on its balance sheet throughout the Class Period. On October 17, 2011, David Einhorn, a prominent activist investor, released a comprehensive report, including witness testimonials by former GMCR and MBlock employees, disclosing GMCR's misconduct and questionable relationship with MBlock. Following the release of the report, the price of GMCR shares fell approximately 10% from its closing price of $92.09 on October 14, 2011 to close at $82.50 on October 17, 2011, the next trading day, on unusually heavy trading volume. On October 19, 2011, after Einhorn's presentation was more widely distributed, the price of GMCR common stock fell another 15% to close at $69.80 on October 19, 2011, on unusually heavy trading volume. Finally, on November 9, 2011, GMCR announced disappointing earnings results and skyrocketing inventory. On this news, GMCR shares dropped 40%, from a close of $67.02 on November 9 to a close of $40.89 on November 10, 2011, on extremely heavy trading volume. About Lieff Cabraser Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York and Nashville, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility. Since 2003, the National Law Journal has selected Lieff Cabraser as one of the top plaintiffs' law firms in the nation. In compiling the list, the National Law Journal examined recent verdicts and settlements in addition to overall track records. Lieff Cabraser is one of only two plaintiffs' law firms in the United States to receive this honor for the last nine consecutive years. For more information about Lieff Cabraser and the firm's representation of investors, please visit http://www.lieffcabraser.com. This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules. Source/Contact for Media Inquiries Only:Lieff Cabraser Heimann & Bernstein, LLPSharon M. Lee, 800-541-7358