NEW YORK, Oct. 8, 2010 (GLOBE NEWSWIRE) -- Pomerantz Haudek Grossman & Gross LLP will be filing a class action lawsuit against Green Mountain Coffee Roasters, Inc. ("Green Mountain" or the "Company") (Nasdaq:GMCR). The class action will be filed on behalf of a class consisting of all persons or entities who purchased Green Mountain securities during the period from July 28, 2010 through September 29, 2010, inclusive (the "Class Period"). The Complaint alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act and Rule 10b-5 promulgated thereunder.
The Complaint charges Green Mountain and certain of the Company's executive officers with violations of federal securities laws. Green Mountain operates in the specialty coffee industry in the United States and internationally. The Company sells whole bean and ground coffee selections, cocoa, teas and coffees in K-Cup portion packs, and also manufactures and markets gourmet single-cup brewing systems under the Keurig brand name. The Complaint alleges that throughout the Class Period defendants knew or recklessly disregarded that their public statements concerning the Company's business, operations and prospects were materially false and misleading. Specifically, defendants made false and/or misleading statements and/or failed to disclose: 1) that Green Mountain was improperly recognizing revenue; (2) that the Company was using an incorrect gross margin percentage to eliminate the inter-company markup for certain products at its Keurig business, which was decreasing cost of sales; (3) that, as a result, Green Mountain's financial results were overstated; (4) that the Company's financial results were not prepared in accordance with Generally Accepted Accounting Principles ("GAAP"); (5) that Green Mountain lacked adequate internal and financial controls; (6) that, as a result of the above, Green Mountain's financial statements were materially false and misleading at all relevant times; and (7), as a result of the foregoing, that the defendants lacked a reasonable basis for their positive statements about the Company, its business, operations and prospects.
On September 28, 2010, Green Mountain disclosed that the U. S. Securities and Exchange Commission was conducting an inquiry related to certain of the Company's revenue recognition practices and that the Company had been using an incorrect gross margin percentage to eliminate the inter-company markup in its K-Cup inventory balance residing at its Keurig business unit, which had resulted in a lower margin applied to the Keurig ending inventory balance effectively overstating consolidated inventory and understating cost of sales. As a result of this news, in after-hours trading on September 28, 2010, Green Mountain's stock price declined $5.09 per share, or 13.75%, on unusually heavy trading volume.
If you are a shareholder who purchased Green Mountain securities during the Class Period, you have until November 29, 2010 to ask the Court to appoint you as lead plaintiff for the class. A copy of the complaint can be obtained at www.pomerantzlaw.com . To discuss this action, contact Fei-Lu Qian at firstname.lastname@example.org or 888.476.6529 (or 888.4-POMLAW), toll free. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
The Pomerantz Firm, with offices in New York, Chicago, Washington, D.C., Columbus, Ohio and Burlingame, California, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com .
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