Central European Distribution Corporation (NASDAQ: CEDC) Investor Securities Class Action Lawsuit 06/08/2012

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Company Name(s): 
Central European Distribution
Case Name: 
Central European Distribution Shareholder Class Action Lawsuit 06/08/2012
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Approved
Affected Securities
NASDAQ: CEDC
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
06/08/2012
Class Period Begin: 
03/01/2010
Class Period End: 
11/13/2012
Court of Filing: 
U.S. District Court for the Southern District of New York
Deadline To File for Lead: 
08/07/2012
Date Settled: 
07/31/2014
Settlement Amount: 
$10,000,000
Deadline to Participate in Settlement: 
12/15/2014
Summary: 

November 14, 2014 - The court approved the settlement, entered the orders approving the plan of allocation, the motion for attorneys’ fees and expenses, and dismissed the action with prejudice.

July 31, 2014 - The court preliminarily approved the settlement.

April 28, 2014 - Parties filed a stipulation of settlement.

April 17, 2013 - The defendants filed a motion to dismiss.

April 7, 2013 - Central European Distribution Corporation and certain of its subsidiaries filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware.

February 15, 2013 - The lead plaintiff filed an amended consolidated complaint on behalf of investors who purchased Central European Distribution Corporation (NASDAQ: CEDC) common shares between March 1, 2010 and November 13, 2012. The plaintiff alleges that the defendants violated the Securities Exchange Act of 1934 by issuing false and misleading statements between March 1, 2010 and November 13, 2012.

December 17, 2012 - Lead plaintiff and lead counsel were appointed.

September 4, 2012 - The case was transferred to the U.S. District Court for the District of New Jersey.

August 7, 2012 - Lead plaintiff motions were filed.

June 8, 2012 - An investor in shares of Central European Distribution Corporation (NASDAQ: CEDC) filed a lawsuit in the U.S. District Court for the Southern District of New York against Central European Distribution Corporation over alleged Violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between March 1, 2010 and June 4, 2012 about its subsidiary in Russia.

According to the complaint the plaintiff alleges on behalf of all persons who purchased or otherwise acquired Central European Distribution Corporation (NASDAQ: CEDC) securities between March 1, 2010 and June 4, 2012, that Central European Distribution Corporation and certain of its top officials violated the Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated. Specifically the plaintiff claims that defendants allegedly made false and/or misleading statements, as well as failed to disclose that Central European Distribution Corporation's reported net sales in the years ended December 31, 2010 and 2011 were materially inflated, that as a result of its alleged failure to appropriately account for customer rebates, Central European Distribution Corporation anticipates restating its reported consolidated net sales, operating profit and related accounts receivable for these periods by approximately $30 to $40 million, and as a result of the foregoing, that Central European Distribution Corporation's statements were allegedly materially false and misleading at all relevant times.

Central European Distribution Corporation reported that its annual Revenue increased from $571.24million in 2008 to $877.59million in 201. However, its Net Loss increased over the same time periods from $18.60million to $1.29billion.

Shares of Central European Distribution Corporation (NASDAQ: CEDC) rose from as low as $6.47 per share to $38.56 per share in April 2010.

Since then NASDAQ: CEDC shares lost substantially value.

Then on June 4, 2012, Central European Distribution Corporation (NASDAQ: CEDC) announced that it expects to restate its financial results for all financial reporting periods from and after January 1, 2010.

Central European Distribution Corporation said that it changed its senior management at its main operating subsidiary in Russia, the Russian Alcohol Group ("RAG"), during April 2012 and following this change senior Central European Distribution Corporation management requested that the new management team review RAG's business operations and internal controls, including an assessment of the resources and needs of the corporate finance and reporting departments, as identified in Item 9A of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2011.

NASDAQ: CEDC share fell on June 8, 2012, to as low as $2.82 per share.