LOS ANGELES, Nov. 19, 2010 (GLOBE NEWSWIRE) -- Glancy Binkow & Goldberg LLP announces that all persons or entities who purchased or otherwise acquired the securities of Green Mountain Coffee Roasters, Inc. ("Green Mountain" or the "Company") (Nasdaq:GMCR) between July 28, 2010 and September 29, 2010, inclusive (the "Class Period"), have 11 days until the November 29, 2010, deadline to move the Court to serve as Lead Plaintiff in the securities fraud class action lawsuit. The case filed by Glancy Binkow & Goldberg LLP, Warchol v. Green Mountain Coffee Roasters, Inc.,et al., No. 10-cv-00238-wks, has been assigned to the Honorable William K. Sessions III, United States District Judge for the District of Vermont.
A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or to obtain a copy of the Complaint at (310) 201‑9150 or Toll Free at (888) 773‑9224, by email to shareholders@glancylaw.com, or visit our website at http://www.glancylaw.com.
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 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.
The Private Securities Litigation Reform Act of 1995 ("PSLRA") requires the Court to appoint a "Lead Plaintiff" in this case. Any person or group who suffered a loss as a result of purchasing Green Mountain securities between July 28, 2010 and September 29, 2010, may ask the Court to be appointed as Lead Plaintiff, but must file a motion no later than the November 29, 2010 deadline.
Glancy Binkow & Goldberg LLP is a law firm with significant experience in prosecuting class actions, substantial expertise in actions involving corporate fraud, and is representing Green Mountain shareholders in this litigation.
If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201‑9150, Toll Free at (888) 773‑9224, by e‑mail to shareholders@glancylaw.com, or visit our website at http://www.glancylaw.com.
CONTACT: Glancy Binkow & Goldberg LLP, Los Angeles, CA Lionel Z. Glancy Michael Goldberg (310) 201-9150 (888) 773-9224 shareholders@glancylaw.com www.glancylaw.com