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Glancy Binkow & Goldberg LLP, Representing Investors Who Purchased Green Mountain Coffee Roasters, Inc., Announces Class Action

^{Published on 2010-10-08 07:41:11 - Market Wire}
 

LOS ANGELES--([ BUSINESS WIRE ])--Notice is hereby given that Glancy Binkow & Goldberg LLP has filed a class action lawsuit in the United States District Court for the District of Vermont on behalf of a class consisting of all persons or entities who purchased the securities of Green Mountain Coffee Roasters, Inc. (aGreen Mountaina or the aCompanya) (NASDAQ:GMCR) between July 28, 2010 and September 28, 2010, inclusive (the aClass Perioda).

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 at [ shareholders@glancylaw.com ], or visit our website at [ http://www.glancylaw.com ].

The Complaint charges Green Mountain and certain of the Companya™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 knew or recklessly disregarded that their public statements concerning the Companya™s business, operations and prospects were materially false and misleading. Specifically, 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 Mountaina™s financial results were overstated; (4) that the Companya™s financial results were not prepared in accordance with Generally Accepted Accounting Principles (aGAAPa); (5) that Green Mountain lacked adequate internal and financial controls; (6) that, as a result of the above, Green Mountaina™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 Companya™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 Mountaina™s stock price declined $5.09 per share, or 13.75%, on unusually heavy trading volume.

Plaintiff seeks to recover damages on behalf of class members and is represented by Glancy Binkow & Goldberg LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.

If you are a member of the class described above, you may move the Court, no later than November 29, 2010, to serve as lead plaintiff, however, you must meet certain legal requirements. 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 or Toll Free at (888) 773-9224, by e-mail to [ shareholders@glancylaw.com ], or visit our website at [ http://www.glancylaw.com ].