Investors who continuously held shares of Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR)
The investigation by a law firm focuses on potential wrongdoing by certain officers and directors of Green Mountain Coffee Roasters Inc. More specifically, the investigation concerns whether certain Green Mountain Coffee Roasters officers and directors breached their fiduciary duties and caused damage to the company. and its shareholders by failing to implement adequate internal controls and misstating the company's financial results.
Shares of Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR)
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. Among 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.
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 $17.57 on July 20, 2012.
On October 19, 2012, NASDAQ:GMCR shares closed at $23.93 per share.
Those who continuously held shares of Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR)