PHILADELPHIA, Oct. 5, 2010 (GLOBE NEWSWIRE) -- Spector Roseman Kodroff & Willis, P.C. ("SRKW") announced today that a securities fraud class action lawsuit has been filed against Green Mountain Coffee Roasters Inc. ("Green Mountain" or the "Company") (Nasdaq:GMCR) in the United States District Court in Vermont.
Investors who purchased Green Mountain common stock between July 28, 2010 and September 28, 2010 (the "Class Period"), and who wish to move to be a lead plaintiff, must file a motion by November 29, 2010. You may contact our attorneys below to discuss this matter.
Green Mountain and certain of its Officers are charged with making a series of materially false and misleading statements related to the Company's business and operations in violation of the Securities Exchange Act of 1934. The Complaint alleges that Green Mountain artificially inflated the Company's stock price during the Class Period by issuing inaccurate and unreliable financial statements, which were not prepared in accordance with Generally Accepted Accounting Principles and U.S. Securities and Exchange Commission rules.
The Complaint also alleges that Green Mountain completed a sale of 8,566,649 shares of its common stock to Luigi Lavazza on August 28, 2010, for an aggregate purchase price of $250 million, despite the fact that the Company knew its reported financial statements were untrue and that it lacked adequate internal operational and financial control systems.
Following the close of trading on September 28, 2010, shareholders learned the SEC had launched an inquiry into Green Mountain's revenue recognition, that it had been notified by the SEC of this investigation as early as September 20, 2010, and that it expected to take a restatement charge in the near term – rendering the Company's prior reported financial statements and reports unreliable, false and materially misleading. On this news, shares of the Company's stock fell from $37 per share to a low of $27.47 per share.
SRKW has been investigating this matter and, in particular, the relationship between Green Mountain and its fulfillment vendors, including M Block & Sons Inc. (which accounted for 51 percent of the accounts receivable last year). The investigation goes back to 2007 when management admits that its accounting irregularities arose.
If you want to consider serving as a lead plaintiff and you bought Green Mountain shares between 2007 and September 28, 2010, or wish to discuss this matter further, you are encouraged to contact the following SRKW attorneys via telephone or e-mail:
SRKW has been representing individual and institutional investors for nearly three decades, serving as lead counsel in numerous securities class actions in U.S. federal and state courts. Please visit the firm's website () for more information about the firm.
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CONTACT: Spector Roseman Kodroff & Willis, P.C. (215) 496-0300 (888) 844-5862