In re Green Mountain Coffee Roasters, Inc. Securities Litigation
|Court:||United States District Court for the District of Vermont|
|Judge:||Hon. William K. Sessions III|
|Class Period:||02/ 2/2011 - 11/ 9/2011|
|Case Contacts:||John C. Browne, Julia Tebor|
Securities fraud class action filed on behalf of a class of persons and entities who purchased or acquired common stock issued by Green Mountain Coffee Roasters, Inc. (“GMCR” or “Company”) between February 2, 2011 and November 9, 2011 (the "Class Period"). Defendants include the Company and certain members of the Company’s senior management, including Robert P. Stiller (Founder & Chairman) (collectively, “Defendants”). GMCR is a Vermont-based leader in the specialty coffee and coffee maker businesses.
On April 27, 2012, Louisiana Municipal Public Employees’ Retirement System, Sjunde AP-Fonden, Board of Trustees of the City of Fort Lauderdale General Employees’ Retirement System, Employees Retirement System of the Government of the Virgin Islands, and the Public Employees’ Retirement System of Mississippi were appointed as co-Lead Plaintiffs and BLB&G was appointed as co-Lead Counsel.
The Plaintiffs allege that the Defendants materially falsified financial statements by employing an elaborate, fraudulent scheme in order to portray the business as healthy and profitable to investors. According to the Complaint, the Defendants’ scheme included fabricating and processing fictitious sales orders through the order-fulfillment company, M. Block & Sons, which was later revealed to be effectively controlled by GMCR. In turn, these dummy sales served to inflate the Company’s “revenues,” which also boosted its profits, and inventory and product demand levels – all metrics used and relied upon by investors and analysts. Defendants then carried the proceeds of these “sales” as assets on GMCR’s balance sheet, thereby also inflating the value of the Company’s assets.
This action seeks to recover the damages caused by the Defendants’ misconduct.