SOURCE: Dyer & Berens LLP

Dyer & Berens LLP

October 11, 2010 15:45 ET

Dyer & Berens LLP Files Class Action Lawsuit Against Green Mountain Coffee Roasters, Inc.; Encourages Investors to Consider Their Legal Options Prior to the Lead Plaintiff Deadline (GMCR)

DENVER, CO--(Marketwire - October 11, 2010) - Dyer & Berens LLP ( today announced that it has filed a class action lawsuit in the United States District Court for the District of Vermont on behalf of investors who purchased Green Mountain Coffee Roasters, Inc. (NASDAQ: GMCR) common stock between July 28, 2010 and September 29, 2010, inclusive (the "Class Period"). The complaint charges Green Mountain Coffee and certain of its officers and executives with violations of the federal securities laws. 

If you wish to serve as a lead plaintiff, you must move the court no later than November 29, 2010. If you wish to discuss the class action lawsuit or have any questions concerning this notice or your rights or interests, please contact Jeffrey A. Berens, Esq., at (888) 300-3362 x302, (303) 861-1764, or via email at Any member of the putative class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Although an investor's ability to share in any recovery is not affected by their decision to seek appointment, lead plaintiffs make important decisions which could affect the overall recovery for class members.

The class action complaint charges that, throughout the Class Period, defendants disseminated false and misleading statements to the investing public relating to Green Mountain Coffee's accounting practices and related controls. Specifically, defendants allegedly misrepresented and/or failed to disclose that: (a) the Company had significantly increased the inventory levels of its products in its distribution channel (sometimes referred to as "channel stuffing"); (b) the Company failed to properly and timely account for revenue in violation of GAAP; (c) the Company failed to properly account for inventory and cost of goods sold in conformity with GAAP; (d) the Company materially overstated its gross margins and earnings; (e) the Company was experiencing declining demand for its products in its legacy businesses; and (f) as a result, defendants lacked a reasonable basis for their positive statements about the Company and its prospects.

On September 28, 2010, Green Mountain Coffee disclosed that it had discovered an intercompany adjustment error which had added $0.03 to the Company's earnings per share during the quarter ended June 26, 2010. Without that error, the Company would not have been able to beat earnings estimates for its fourth fiscal quarter. The Company further disclosed that as of September 20, 2010, it was the subject of an inquiry and a voluntary production of documents and information by the SEC's Division of Enforcement. On this news, the price of the Company's stock fell more than 16%, to close at $31.06 per share on about ten times the average trading volume.

Plaintiff seeks to recover damages on behalf of Green Mountain Coffee investors. The plaintiff is represented by Dyer & Berens LLP, which has expertise in prosecuting investor class actions involving financial fraud. The firm's extensive experience in securities litigation, particularly in cases brought under the Private Securities Litigation Reform Act, has contributed to the recovery of hundreds of millions of dollars for aggrieved investors. For more information about the firm, please go to

Contact Information

  • Contact:

    Jeffrey A. Berens
    Dyer & Berens LLP
    303 East 17th Avenue, Suite 300
    Denver, CO 80203
    Tel: (888) 300-3362 x302 or (303) 861-1764
    Email: Email Contact