N@N

Robbins Geller Rudman & Dowd LLP Files Class Action Suit Against Green Mountain Coffee Roasters, Inc.

^{Published on 2010-10-07 14:25:57 - Market Wire}
 

NEW YORK--([ BUSINESS WIRE ])--Robbins Geller Rudman & Dowd LLP (aRobbins Gellera) ([ http://www.rgrdlaw.com/cases/greenmountain/ ]) today announced that a class action has been commenced in the United States District Court for the District of Vermont on behalf of purchasers of Green Mountain Coffee Roasters, Inc. (aGMCRa) (Nasdaq:GMCR) common stock during the period between July 28, 2010 and September 29, 2010 (the aClass Perioda).

"staff of the SECa™s Division of Enforcement informed the Company that it was conducting an inquiry and made a request for a voluntary production of documents and information."

If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from September 30, 2010. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiffa™s counsel, Samuel H. Rudman or David A. Rosenfeld of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at [ djr@rgrdlaw.com ]. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at [ http://www.rgrdlaw.com/cases/greenmountain/ ]. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

The complaint charges GMCR and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The Company describes itself as a leader in the specialty coffee and coffee maker businesses that markets and sells over 200 whole bean and ground coffee selections, cocoa, teas and coffees in K-Cup portion packs, Keurig single-cup brewers and other accessories.

The complaint alleges that, during the Class Period, defendants issued materially false and misleading statements regarding the Companya™s business and its prospects. Specifically, defendants misrepresented and/or failed to disclose the following adverse facts: (a) that the Company had significantly increased the inventory levels of its products in its distribution channel (sometimes referred to as achannel stuffinga); (b) that the Company failed to properly and timely account for revenue in violation of GAAP; (c) that the Company failed to properly account for inventory and cost of goods sold in conformity with GAAP; (d) that the Company materially overstated its gross margins and earnings; (e) that the Company was experiencing declining demand for its products in its legacy businesses; and (f) that, as a result of the foregoing, defendants lacked a reasonable basis for their positive statements about the Company and its prospects.

Then, on September 28, 2010, GMCR disclosed that it had discovered an intercompany adjustment error in connection with the preparation of the Companya™s financial results for its fourth fiscal quarter. The intercompany adjustment error added $0.03 to the Companya™s earnings per share during the quarter ended June 26, 2010. Without this error, GMCR would not have been able to beat earnings estimates for that quarter by a penny per share. In addition, the Company further disclosed that, on September 20, 2010, the astaff of the SECa™s Division of Enforcement informed the Company that it was conducting an inquiry and made a request for a voluntary production of documents and information.a In response to these adverse disclosures about the Companya™s accounting practices and related controls, on September 29, 2010, the price of GMCRa™s stock fell $5.95 per share, or more than 16%, to close at $31.06 per share on about ten times the average trading volume.

Plaintiff seeks to recover damages on behalf of all purchasers of GMCR common stock during the Class Period (the aClassa). Plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.

Robbins Geller, a 180-lawyer firm with offices in San Diego, San Francisco, New York, Boca Raton, Washington, D.C., Philadelphia and Atlanta, is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. The Robbins Geller Web site ([ http://www.rgrdlaw.com ]) has more information about the firm.