SOURCE: Stull, Stull & Brody

October 01, 2010 18:00 ET

Stull, Stull & Brody Announces Investigation on Behalf of Purchasers of Green Mountain Coffee Roasters, Inc. Common Stock (NASDAQ: GMCR)

NEW YORK, NY--(Marketwire - October 1, 2010) - Attorney Advertising. Stull, Stull & Brody has been retained by a shareholder of Green Mountain Coffee Roasters, Inc. ("Green Mountain" or the "Company") (NASDAQ: GMCR) and has commenced an investigation on behalf of purchasers of the Company's common stock concerning potential violations of the federal securities laws and/or breaches of fiduciary duties by Green Mountain and certain of its officers and directors. If you purchased Green Mountain common stock and wish to discuss your rights or interests regarding this matter you may contact Stull, Stull & Brody at the address set forth below.

On September 28, 2010, Green Mountain announced that during fiscal years and the respective fiscal quarters ended 2007, 2008, 2009, and 2010 as of June 26, the Company overstated its pre-tax income by $7.6 million cumulatively due to an accounting error that effectively overstated the Company's consolidated inventory and understated its cost of sales. According to the Company, the accounting error related to the margin percentage used to eliminate the inter-company markup of its K-Cup inventory balance residing at its Keurig business unit. 

The Company also announced on September 28, 2010, that the staff of the SEC's Division of Enforcement informed the Company on September 20, 2010, that it was conducting an inquiry and made a request for a voluntary production of documents and information related to the Company's revenue recognition practices and its relationship with one of its fulfillment vendors.

The current investigation by Stull, Stull & Brody concerns whether Green Mountain issued inaccurate and unreliable financial statements in violation of GAAP and SEC rules and regulations, whether Green Mountain and its officers knew that the Company's reported financial statements were untrue and that the Company lacked adequate internal systems of operational and financial controls, whether Green Mountain and its officers artificially inflated the Company's stock price through a series of false and misleading statements related to the Company's business and operations in violation of the Securities Exchange Act of 1934, and whether the Company's officers and directors breached their fiduciary duties owed to the Company's public shareholders. 

A class action lawsuit has been commenced against the Company and certain of its executive officers in U.S. District Court alleging violations of the federal securities laws on behalf of purchasers of the Company's common stock during a proposed class period. If you wish to apply to serve as a lead plaintiff in the action, you may move the Court by no later than November 29, 2010. No class has yet been certified in the action. 

If you purchased Green Mountain common stock and wish to discuss your rights or interests regarding this matter you may contact Howard T. Longman, Esq. at Stull, Stull & Brody by calling 1-800-337-4983 or 1-212-687-7230, or by email to hlongman@ssbny.com or by writing to Stull, Stull & Brody, 6 East 45th Street, New York, NY 10017. Stull, Stull & Brody has litigated many class actions for violations of securities laws and breaches of fiduciary duty on behalf of defrauded investors over the past 40 years and has obtained court approval of substantial settlements on numerous occasions. Stull, Stull & Brody has offices in New York and Los Angeles. Additional information about Stull, Stull & Brody can be found on the firm's website at www.ssbny.com.

Attorney advertising. Prior results do not guarantee a similar outcome.

Contact Information

  • CONTACT:
    Howard T. Longman, Esq.
    Stull, Stull & Brody
    1-800-337-4983 or 1-212-687-7230
    Email: hlongman@ssbny.com