San Diego, CA -- (SBWIRE) -- 07/11/2012 -- Certain directors and officers of Central European Distribution Corp are under the investigation for current long term investors in NASDAQ:CEDC shares over possible breaches of fiduciary duties.
Investors who are current long term investors in Central European Distribution Corp (NASDAQ:CEDC) shares, have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
The investigation by a law firm for current long term investors in Central European Distribution Corp (NASDAQ:CEDC) stocks follows a lawsuit filed earlier by shareholders who purchased NASDAQ:CEDC shares only between March 1, 2010 and June 4, 2012. The investigation on behalf of current long term investors in Central European Distribution Corp (NASDAQ:CEDC) stocks, including also those who purchased within or prior to the above stated time frame, concerns whether certain Central European Distribution officers and directors are liable in connection with the allegations made in that lawsuit.
According to that complaint filed in the U.S. District Court, Southern District of New York, the plaintiff alleges that Central European Distribution Corp violated the Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated. Specifically the plaintiff claims that defendants allegedly made false and/or misleading statements, as well as failed to disclose that Central European Distribution Corp's reported net sales in the years ended December 31, 2010 and 2011 were materially inflated, that as a result of its alleged failure to appropriately account for customer rebates, Central European Distribution Corp anticipates restating its reported consolidated net sales, operating profit and related accounts receivable for these periods by approximately $30 to $40 million, and as a result of the foregoing, that Central European Distribution Corp's statements were allegedly materially false and misleading at all relevant times.
Central European Distribution Corp
Then on June 4, 2012, Central European Distribution Corporation (NASDAQ: CEDC) announced that it expects to restate its financial results for all financial reporting periods from and after January 1, 2010.
Central European Distribution Corporation said that it changed its senior management at its main operating subsidiary in Russia, the Russian Alcohol Group ("RAG"), during April 2012 and following this change senior Central European Distribution Corporation management requested that the new management team review RAG's business operations and internal controls, including an assessment of the resources and needs of the corporate finance and reporting departments, as identified in Item 9A of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2011.
NASDAQ:CEDC share fell on June 21, 2012, to as low as $2.61 per share.
On July 10, 2012, NASDAQ:CEDC shares closed at $3.67 per share, significantly below its current 52weekHigh of $12.01 per share.
Those who purchased shares of Central European Distribution Corp (NASDAQ:CEDC) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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