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Copyright ©2011 Levi & Korsinsky, LLP
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| Green Mountain Coffee Roasters, Inc. |
| Green Mountain Coffee Roasters, Inc. (NASDAQ: GMCR) shareholder litigation in connection with alleged securities fraud |
Levi & Korsinsky announces that a class action
lawsuit has been commenced in the U.S. District
Court for the District of Vermont on behalf of
investors who purchased Green Mountain Coffee
Roasters, Inc. ("GMCR" or the "Company")
lawsuit has been commenced in the U.S. District
Court for the District of Vermont on behalf of
investors who purchased Green Mountain Coffee
Roasters, Inc. ("GMCR" or the "Company")
(NASDAQ: GMCR) common stock between February 2, 2010 and November 9, 2011.
The complaint alleges that certain of its officers and directors misrepresented and/or failed to
disclose the following adverse facts: (a) GMCR used its key fulfillment vendor, M. Block & Sons, to
house excessively manufactured, expired, or otherwise unsold product; (b) t GMCR materially
overstated its revenues based on falsified sales orders for hundreds of millions of dollars in K-Cup
and Keurig brewer products; (c) GMCR booked "revenues" associated with these false sales orders
and shipments; (d) GMCR overstated its assets in proportion to its fictitious revenues by carrying
the proceeds of dummy sales as assets on its balance sheet; and (e) as a result, GMCR’s stock traded
at artificially inflated prices.
On October 17, 2011, a report was released by a prominent activist investor that included witness
testimonials by former GMCR and M. Block employees disclosing GMCR’s misconduct. Following
the release, GMCR shares fell approximately 10% from its closing price of $92.09 on October 14,
2011 to close at $82.50 on October 17, 2011 on heavy trading volume.
The complaint alleges that certain of its officers and directors misrepresented and/or failed to
disclose the following adverse facts: (a) GMCR used its key fulfillment vendor, M. Block & Sons, to
house excessively manufactured, expired, or otherwise unsold product; (b) t GMCR materially
overstated its revenues based on falsified sales orders for hundreds of millions of dollars in K-Cup
and Keurig brewer products; (c) GMCR booked "revenues" associated with these false sales orders
and shipments; (d) GMCR overstated its assets in proportion to its fictitious revenues by carrying
the proceeds of dummy sales as assets on its balance sheet; and (e) as a result, GMCR’s stock traded
at artificially inflated prices.
On October 17, 2011, a report was released by a prominent activist investor that included witness
testimonials by former GMCR and M. Block employees disclosing GMCR’s misconduct. Following
the release, GMCR shares fell approximately 10% from its closing price of $92.09 on October 14,
2011 to close at $82.50 on October 17, 2011 on heavy trading volume.
