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Law Offices of Howard G. Smith, Representing Investors of Green Mountain Coffee Roasters, Inc., Announces Class Action Lawsuit

  //house-home.news-articles.net/content/2010/10/1 .. roasters-inc-announces-class-action-lawsuit.html
  Published in House and Home on Monday, October 11th 2010 at 17:40 GMT by Market Wire
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BENSALEM, Pa.--([ BUSINESS WIRE ])--Law Offices of Howard G. Smith, representing investors of Green Mountain Coffee Roasters, Inc. (aGreen Mountaina or the aCompanya) (NASDAQ:GMCR), has filed a class action lawsuit in United States District Court on behalf of a class (the aClassa) consisting of all persons or entities who purchased the securities of Green Mountain between July 28, 2010 and September 29, 2010, inclusive (the aClass Perioda). The class action lawsuit was filed in the United States District Court for the District of Vermont.

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 issued false and/or misleading statements and/or failed to disclose that: (1) Green Mountain was improperly recognizing revenue; (2) 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) as a result, Green Mountaina™s financial results were overstated; (4) the Companya™s financial results were not prepared in accordance with Generally Accepted Accounting Principles (aGAAPa); (5) the Company lacked adequate internal and financial controls; (6) 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, 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 volume.

No class has yet been certified in the above action. Until a class is certified, you are not represented by counsel unless you retain one. If you purchased Green Mountain securities between July 28, 2010 and September 29, 2010, you have certain rights, and have until November 29, 2010, to move for lead plaintiff status. To be a member of the class you need not take any action at this time, and you may retain counsel of your choice. 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 Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215)638-4847, Toll-Free at (888)638-4847, by email to [ howardsmith@howardsmithlaw.com ] or visit our website at [ http://www.howardsmithlaw.com ].