San Diego, CA -- (SBWIRE) -- 10/09/2012 -- An investigation on behalf of current long-term investors in NASDAQ:GMCR shares, who continuously for years held NASDAQ:GMCR shares, over potential breaches of fiduciary duties by top officials at Green Mountain Coffee Roasters Inc. in connection with certain financial statements was announced.
Investors who continuously held shares of Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) for years, 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 potential wrongdoing by certain officers and directors of Green Mountain Coffee Roasters Inc.
Green Mountain Coffee Roasters Inc. reported that its Total Revenue rose from $492.52 million for the 52 week period that ended on Sept. 27, 2008 to over $2.65 billion for the 52 week period that ended on Sept. 24, 2011 and its Net Income over the respective time periods increased from $21.67 million to $199.50 million. Shares of Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) rose from $23.47 in June 2010 to as high as $107.99 per share on September 16, 2011.
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.
Shares of Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) dropped from over $107 in September 2011 to $43.71 per share on November 11, 2012.
Then in late November 2011 an investor filed a securities class action lawsuit against Green Mountain Coffee Roasters Inc. and certain of its executives and directors. Mong other things, 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.
Then on May 2, 2012, after the market closed, Green Mountain Coffee Roasters, Inc. reported its Second Quarter Fiscal Year 2012 Results. Among other things, Green Mountain Coffee Roasters missed second quarter sales estimates. It said its second quarter Fiscal Year 2012 Net Sales were up 37%, compared to an estimated growth of 45-50%. In addition Green Mountain Coffee Roasters revised estimates for its fiscal year 2012.
NASDAQ:GMCR shares dropped from $49.52 on May 2, 2012 to $25.87 per share on May 3, 2012.
Shortly after the announcement another securities class action lawsuit was filed in which the plaintiff alleges that defendants issued materially false and misleading statements regarding the Company’s growth and demand for its products.
NASDAQ:GMCR shares declined over the next months to as low as $17.49 per share in July.
On October 8, 2012, NASDAQ:GMCR shares closed at $22.53 per share, which is significantly below its current 52 week High of $96.77 per share.
Those who continuously held shares 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.
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