Shareholders Foundation, Inc.

Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) Investor Alert: Investigation over Possible Wrongdoing

An investigation for current long term investors in Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) shares over potential breaches of fiduciary duties by certain officer and directors was announced and NASDAQ:GMCR stockholders should contact the Shareholders Foundation.

 

San Diego, CA -- (SBWIRE) -- 04/17/2012 -- An investigation on behalf of investors in NASDAQ:GMCR shares was announced over possible breaches of fiduciary duties in connection with potential wrongdoing by certain directors and officers at Green Mountain Coffee Roasters Inc. in connection with certain transaction based on insider non-public information.

Investors who are a current (long term) stockholders of Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR), 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 focuses on possible shareholder claims based on potential breaches of fiduciary duties. Specifically, the investigation concerns whether certain directors and officers at Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) breached their fiduciary duties by selling company stock based on insider non-public information.

Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) reported that its Total Revenue rose from $492.52million for a 52weeks period ending on Sept. 27, 2008 to $2.65billion for a 52weeks period ending on Sept 24, 2011.

Shares of Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) rose after its 3:1 split on May 18, 2010 from under $24 per share to as high as $111.62 per share on Sept. 19, 2011.

Then on October 17, 2011, activist investor David Einhorn issued a report. Among other things, the report raised questions concerning the relationship and business practice between Green Mountain Coffee Roasters Inc and M.Block & Sons.

On November 9, 2011, Green Mountain Coffee Roasters, Inc. reported its Full Year and Fiscal 2011 Fourth Quarter Results.

NASDAQ:GMCR shares fell from over $110 in September to $40.89 on November 10, 2010.

Then in Janaury 2012 an investor filed a lawsuit in U.S. District Court for the District of Vermont. The plaintiff alleges that that Green Mountain Coffee Roasters, Inc. violated Federal Securities Laws. Specifically the plaintiff claims that certain defendants used Green Mountain Coffee Roasters ' key fulfillment vendor, M.Block & Sons as a captive warehouse to harbor excessively manufactured, expired, or otherwise unsold product. The plaintiff says that the fraudulent scheme at Green Mountain Coffee Roasters Inc involved materially overstating its revenues based on falsified sales orders -- including through sham inventory shipments -- for hundreds of millions of dollars in K-Cup and Keurig brewer products.

Since then NASDAQ:GMCR shares regained some value and reached in February 2012 almost $70 per share.

On March 9, 2012 Green Mountain Coffee Roasters, Inc. (NASDAQ: GMCR), released a statement regarding Starbucks' announcement of their new initiative in the espresso-based single-cup category.

Green Mountain Coffee Roasters, Inc. said it recently learned of Starbucks’ planned initiative in the espresso-based single-cup category and that prior to the press release issued by Starbucks and their subsequent public comments, Green Mountain Coffee Roasters was not made aware of any additional capabilities of their planned espresso system.

However, then on March 26, 2012, a media report stated that the founder and chairman of Green Mountain Coffee Roasters Inc. sold $66.3 million of his stock before news that Starbucks Corp. had developed a rival to Green Mountain Coffee Roasters Keurig® Single Cup Brewing system.

The media report said that the founder and chairman’s combined sales on Feb. 15 and 24 were his largest in a single month since at least 2003 and he would have earned $13.7 million less had he sold on March 9.

NASDAQ: GMCR shares fell in April 10, 2012 to $41.17 per share and closed on April 16, 2012 at $43.72 per share.

Those who are current long term investors in Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) shares, have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Trevor Allen
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com