NEW YORK, Nov. 4, 2010 (GLOBE NEWSWIRE) -- Pomerantz Haudek Grossman & Gross LLP has filed a class action lawsuit against Green Mountain Coffee Roasters, Inc. ("Green Mountain" or the "Company") (Nasdaq:GMCR) and certain of its officers. The class action is 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 of 1934 and Rule 10b-5 promulgated thereunder.
Green Mountain 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 (1) deceived the investing public regarding Green Mountain's business, operations, management, and the intrinsic value of Green Mountain common stock; (2) enabled Defendants to artificially inflate the price of Green Mountain shares; (3) enabled Green Mountain to sell $250 million of Company shares to Lavazza, while Defendants were in possession of material, adverse, non-public information about the Company; (4) enabled Green Mountain insiders to sell millions of dollars of their privately held Green Mountain shares while in possession of material, adverse, non-public information about the Company; and, (5) caused Plaintiff and other members of the Class to purchase Green Mountain common stock at artificially inflated prices.
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, on September 29, 2010, Green Mountain's stock price declined $5.95 per share, or more than 16%, 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 . 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 and Washington, D.C., 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 .
CONTACT: Pomerantz Haudek Grossman & Gross LLP Fei-Lu Qian 888-476-6529, ext. 241 email@example.com