SOURCE: Kahn Swick & Foti, LLC

September 30, 2010 11:39 ET

Kahn Swick & Foti, LLC and Former Louisiana State Attorney General File Securities Fraud Class Action Against Green Mountain Coffee Roasters -- Investors With Large Financial Interests Urged to Contact Firm -- GMCR

NEW ORLEANS, LA--(Marketwire - September 30, 2010) -  Kahn Swick & Foti, LLC ("KSF") and Former Louisiana Attorney General Charles C. Foti, Jr. announce that the firm has filed a securities fraud class action lawsuit against Green Mountain Coffee Roasters, Inc. ("Green Mountain" or the "Company") (NASDAQ: GMCR) in the United States District Court for the District of Vermont, on behalf of purchasers of the common stock of the Company between July 28, 2010 and September 28, 2010, inclusive (the "Class Period"). No class has yet been certified in this action.

What You May Do

If you are a Green Mountain 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 Director of Client Relations, Neil Rothstein, Esq. (neil.rothstein@ksfcounsel.com), toll free at 877-694-9510, or via cell phone any time at 330-860-4092, or KSF Managing Partner, Lewis Kahn (lewis.kahn@ksfcounsel.com), toll free 1-866-467-1400, ext. 200, 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 November 29, 2010. 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 encourages both institutional and individual purchasers of Green Mountain to contact the firm. The ultimate resolution of any securities class action is strengthened through the involvement of aggrieved shareholders and lead plaintiffs who have large financial interests.

About the Lawsuit

Green Mountain and certain of its Officers are charged with making a series of materially false and misleading statements related to the Company's business and operations in violation of the Securities Exchange Act of 1934. The Complaint alleges that Green Mountain artificially inflated the Company's stock price during the Class Period by issuing inaccurate and unreliable financial statements, which were not prepared in accordance with GAAP and SEC rules. The Complaint further alleges that on August 28, 2010, Green Mountain completed a sale of 8,566,649 shares of its common stock to Luigi Lavazza, for an aggregate purchase price of $250 million, despite the fact that the Company knew its reported financial statements were untrue and that it lacked adequate systems of internal operational and financial controls. 

On September 28, 2010, following the close of trading, shareholders first learned that Green Mountain was the subject of an SEC investigation into its revenue recognition, that it had been notified by the SEC of this investigation as early as September 20, 2010, and that the Company was also expected to take a restatement charge in the near term -- rendering the Company's prior reported financial statements and reports unreliable, false, and materially misleading. Following this announcement, shares of the Company immediately declined in after-market trading, falling over 15% -- from a close of above $37.00 per share, to a low of $31.25 per share. 

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 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:

    Kahn Swick & Foti, LLC
    Lewis Kahn
    Managing Partner
    866-467-1400, ext. 200
    or after hours via cell phone 504-301-7900
    lewis.kahn@ksfcounsel.com
    206 Covington St.
    Madisonville, LA 70447