SOURCE: Kahn Swick & Foti, LLC

October 26, 2011 22:32 ET

Kahn Swick & Foti, LLC and Former Louisiana Attorney General Announce Securities Class Action Lawsuit Against Central European Distribution Corp. and Its Senior Executives on Behalf of Investors: Remind Investors With Large Financial Interests of Important 12/23/2011 Deadline -- (NASDAQ: CEDC)

NEW ORLEANS, LA--(Marketwire - Oct 26, 2011) - Kahn Swick & Foti, LLC ("KSF") and KSF partner, Former Attorney General of Louisiana, Charles C. Foti, Jr., announce the commencement of a securities class action lawsuit filed in the U.S. 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, inclusive (the "Class Period").

What You May Do

If you are a CEDC shareholder and would like to discuss your legal rights and how this case might affect you and your right to recover for your economic loss, you may, without obligation or cost to you, e-mail or call KSF Managing Partner, Lewis Kahn (lewis.kahn@ksfcounsel.com), toll free, 877-515-1850, or via cell phone any time at 504-301-7900. If you wish to serve as a lead plaintiff in this class action by overseeing lead counsel with the goal of obtaining a fair and just resolution, you must request this position by application to the Court by December 23, 2011.

Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. KSF also encourages anyone with information regarding CEDC's conduct during the period in question to contact the firm, including whistleblowers, former employees, shareholders and others.

About the Lawsuit

The complaint charges CEDC and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The complaint alleges that, during the Class Period, defendants issued materially false and misleading statements regarding the Company's business and prospects, including that: (i) CEDC failed to disclose that it had already experienced material declines in its vodka portfolio, and its loss of market share in Poland; (ii) its market decline was so severe that it was required to take an impairment charge, which CEDC failed to record on a timely basis; (iii) CEDC also failed to disclose that the launch of its new vodka product, Zubrowka Biala, was having a materially adverse effect on gross margins; and (iv) that, based on the foregoing, defendants lacked a reasonable basis for their positive statements about CEDC's growth prospects.

The truth about CEDC only began to be known on March 1, 2011, after the Company issued a release that surprised investors by reporting a net loss from continuing operations on a U.S. GAAP basis for the year of $92.9 million, or $1.32 per fully diluted share, as compared to a net profit of $72.7 million, or $1.35 per fully diluted share the prior year. At that time, defendants also revealed that an excise tax issue related to production in Russia resulted in the loss of two weeks of limited production runs, during a peak production period. In response to these corrective disclosures, shares CEDC fell more than 37%, or over $8.50 per share, on extremely heavy trading volume.

About Kahn Swick & Foti, LLC

KSF, whose partners include the Former Louisiana Attorney General Charles C. Foti, Jr., is a law firm focused on securities class action and shareholder derivative litigation with offices in New York and Louisiana. KSF's lawyers have significant experience litigating complex securities class actions nationwide on behalf of both institutional and individual shareholders. To learn more about KSF, you may visit www.ksfcounsel.com.

Contact Information

  • Contact Information
    Contact:
    Kahn Swick & Foti, LLC
    Lewis Kahn
    Managing Partner
    877-515-1850
    or after hours via cell phone 504-301-7900
    lewis.kahn@ksfcounsel.com
    206 Covington St.
    Madisonville, LA 70447