SOURCE: Izard Nobel LLP

October 25, 2011 17:19 ET

Izard Nobel LLP Announces Class Action Lawsuit Against Central European Distribution Corp.

WEST HARTFORD, CT--(Marketwire - Oct 25, 2011) - The law firm of Izard Nobel LLP, which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the District of New Jersey on behalf of purchasers of the common stock of Central European Distribution Corp. ("CEDC" or the "Company") (NASDAQ: CEDC) between August 5, 2010 and February 28, 2011 (the "Class Period").

The Complaint charges that CEDC and certain of its officers and directors violated federal securities laws. Specifically, the Complaint alleges that defendants failed to disclose the following: (i) CEDC had double digit declines in its vodka portfolio and its loss of market share in Poland was growing steeper; (ii) that the market share declines required that CEDC take an impairment charge which CEDC did not record on a timely basis; and (iii) the launch of CEDC's new vodka product, Zubrowka Biala, which involved significant rebates, was having a materially adverse effect on gross margin.

On March 1, 2011, CEDC announced 2010 full year results, reporting a net loss from continuing operations of $92.9 million. During a conference call, defendants also disclosed an excise tax issue in Russia, which resulted in the loss of two weeks of limited production runs, with one week having nothing produced in the middle of November, their "key selling period." On this news, CEDC fell $8.52, to close at $14.33 per share.

If you are a member of the class, you may, no later than December 23, 2011, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members.

While Izard Nobel LLP has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, and your rights, visit: www.izardnobel.com/centraleuropeandistribution/, or contact Izard Nobel LLP toll-free: (800)797-5499, or by e-mail: firm@izardnobel.com. For more information about class action cases in general, please visit our website: www.izardnobel.com.

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