San Diego, CA -- (SBWIRE) -- 01/31/2012 -- The Shareholders Foundation announces that an investor in Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) filed a new lawsuit in late 2011 the U.S. District Court for the District of Vermont against Green Mountain Coffee Roasters, Inc. over alleged Violations of Federal Securities Laws between February 2, 2011 and November 9, 2011.
Investors who purchased Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) shares, have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
According to the complaint the plaintiff alleged on behalf purchasers of the publicly traded common stock of Green Mountain Coffee Roasters, Inc between February 2, 2011 and November 9, 2011 and on behalf of investors who purchased or otherwise acquired NASDAQ:GMCR stock pursuant and/or traceable to a registered public offering conducted on or about May 5, 2011, that Green Mountain Coffee Roasters, Inc. certain of its executives and directors, and the underwriters of the registered public offering conducted on or about May 5, 2011 violated Federal Securities Laws.
Specifically the plaintiff claims that between February 2, 2011 and November 9, 2011, certain of the defendants systematically manipulated and strategically managed Green Mountain Coffee Roasters' revenues.
Green Mountain Coffee Roasters reported that its 52weeks Total Revenue rose from $492.52million for a 52week period ending on Sept. 27, 2008 to $2.65billion for a period ending on Sept. 24, 2011. Its Net Income for the same time periods rose from $21.67million to $199.50million.
The plaintiff alleges 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.
Shares of Green Mountain Coffee Roasters Inc. (Public, NASDAQ:GMCR) rose since its 3:1 split on May 18, 2010 from slightly below $24 per share to as high as $111.62 per share on September 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
Since late September NASDAQ:GMCR stocks lost more than 50% of its value and traded on November 29, 2011 slightly below $49 per share.
In fact, NASDAQ:GMCR shares fell from $67.02 per share on November 9th to as low as $40.27 per share on November 10, 2011, after Green Mountain Coffee Roasters Inc announced its Full Year and Fiscal 2011 Fourth Quarter Results.
An earlier lawsuit against Green Mountain Coffee Roasters Inc filed by an investor in 2010 over alleged securities laws violations in 2010 was recently dismissed with the chance for the plaintiff to amend the complaint.
Those who purchased Green Mountain Coffee Roasters Inc. (Public, NASDAQ:GMCR) shares, have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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