Press release from PR Newswire
Hagens Berman Reminds Investors That 40 Days Remain Before Deadline in Case against Green Mountain Coffee Roasters
Wednesday, December 21, 2011
BERKELEY, Calif., Dec. 21, 2011 /PRNewswire/ -- Hagens Berman today reminds investors that only 40 days remain before the Jan. 30, 2012, lead plaintiff deadline in a securities class-action filed against Green Mountain Coffee Roasters (NASDAQ: GMCR) following the allegations against GMCR by Hedge Fund Manager David Einhorn. In a Reuters interview published today, Einhorn took an even harder line against Green Mountain, calling a recent audit committee report nothing more than a "whitewash."
Investors with losses greater than $200,000 who purchased GMCR common stock between Feb. 2, 2011 and Nov. 9, 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 emailing GMCR@HBSSlaw.com. Investors can also contact the firm online and learn more about the case by visiting www.HBSSlaw.com/GMCR.
Green Mountain's shares slumped almost 25 percent after analyst David Einhorn warned on Oct. 17, 2011 about weaknesses in the company's business model 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, 2011 to a close of $40.89 on Nov. 10, 2011.
"We will continue to investigate this matter to determine if Mblock helped GMCR hide inventory," said Mr. Kathrein. "GMCR's discussion of the SEC inquiry in its Nov. 14 10-K is also troubling. Inquiries don't normally last a year?but by now should have been converted to a full investigation. GMCR's statement that it is unable to predict the outcome is disturbing given the contradictory claims of the audit committee."
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 Berman
Seattle-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 LLP