The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from Business Wire

Rigrodsky & Long, P.A. Announces a Securities Fraud Class Action Lawsuit Has Been Filed Against Green Mountain Coffee Roasters, Inc.

Monday, May 07, 2012

Rigrodsky & Long, P.A. Announces a Securities Fraud Class Action Lawsuit Has Been Filed Against Green Mountain Coffee Roasters, Inc.19:06 EDT Monday, May 07, 2012 WILMINGTON, Del. (Business Wire) -- Rigrodsky & Long, P.A. announces that a complaint has been filed in the United States District Court for the District of Vermont on behalf of all persons or entities that purchased the securities of Green Mountain Coffee Roasters, Inc. (“Green Mountain” or the “Company”) (NasdaqGS: GMCR) between February 2, 2012 and May 2, 2012, inclusive (the “Class Period”), alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers and directors (the “Complaint”). If you purchased shares of Green Mountain during the Class Period, or purchased shares prior to the Class Period and still hold Green Mountain stock, and wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Scott J. Farrell, Esquire or Peter Allocco of Rigrodsky & Long, P.A., 825 East Gate Boulevard, Suite 300, Garden City, NY at (888) 969-4242, by e-mail to info@rigrodskylong.com, or at: http://www.rigrodskylong.com/investigations/green-mountain-coffee-roasters-inc-gmcr. Green Mountain, a Delaware corporation headquartered in Westbury, Connecticut, is a specialty coffee and coffee maker company. The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements regarding the Company's business operations, financial condition and prospects. Specifically, the Complaint alleges that defendants made materially false and misleading statements, and/or failed to disclose adverse material facts concerning slowing demand for the Company's brewers and portion packs; that Green Mountain's models for predicting consumer demand were flawed and ineffective; and that Defendants lacked any reasonable basis for their positive statements about the Company and its business prospects. According to the Complaint, after the market closed on May 2, 2012, the Company announced its financial results for the second quarter of fiscal 2012, revising downward its full year 2012 sales and earnings guidance, and reporting quarterly revenues and earnings per share that were well below analysts' estimates. Attributing the revenue and earnings shortfall to lower-than-anticipated portion pack and brewer sales, the Company also reported that inventories had almost doubled from $330.8 million to $602.1 million compared to the prior year. Following this announcement, the price of the Company's common stock dropped approximately 48% on May 3, 2012 (the first day of trading after the announcement) to close at $25.87 per share compared to a close of $49.52 per share on May 2, 2012. If you wish to serve as lead plaintiff, you must move the Court no later than July 6, 2012. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the proposed class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. While Rigrodsky & Long, P.A. did not file the Complaint in this matter, the firm, with offices in Wilmington, Delaware and Garden City, New York, regularly litigates securities class, derivative and direct actions, shareholder rights litigation and corporate governance litigation, including claims for breach of fiduciary duty and proxy violations in the Delaware Court of Chancery and in state and federal courts throughout the United States. Attorney advertising. Prior results do not guarantee a similar outcome. Rigrodsky & Long, P.A.Scott J. Farrell, EsquirePeter Allocco888-969-4242516-683-3516Fax: 302-654-9430info@rigrodskylong.comhttp://www.rigrodskylong.com