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:||02/02/2011 - 11/09/2011|
|Case Contacts:||John C. Browne, Rebecca E. Boon|
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, its Chief Executive Officer, Lawrence Blanford, and its Chief Financial Officer, Frances Rathke (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.
Plaintiffs alleged that during the Class Period, Defendants misrepresented Green Mountain as a company that was straining capacity and struggling to build enough inventory to satisfy demand. Defendants, however, knew or should have known that the Company was, in fact, experiencing serious problems with inventory controls and concerns about ballooning inventory levels. The truth was finally revealed on November 9, 2011, when Green Mountain revealed that inventories had increased 156% year-over-year and that the Company had missed sales expectations for the first time in 15 quarters. In response to this news, Green Mountain’s stock price plunged nearly 39%, from $67.02 to $40.89.
This action sought to recover the damages caused by the Defendants’ misconduct.
On June 18, 2018, the parties entered into the Stipulation and Agreement of Settlement setting forth the terms and conditions of the settlement of this action for $36.5 million in cash (the “Settlement”).
Following an October 22, 2018 final approval hearing, the Court granted (i) Lead Plaintiffs’ motion for final approval of the Settlement and Plan of Allocation; and (ii) Lead Counsel’s motion for an award of attorneys’ fees and reimbursement of litigation expenses.
More information about the Settlement can be found at: www.GreenMountainSecuritiesLitigation.com.
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