Central European Distribution Corporation (NASDAQ: CEDC) Investor Securities Class Action Lawsuit 10/24/2011

If you purchased shares of Central European Distribution Corporation (NASDAQ: CEDC), you might have certain options and should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
Central European Distribution
Case Name: 
Central European Distribution Shareholder Class Action Lawsuit 10/24/2011
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Approved
Affected Securities
NASDAQ: CEDC
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
10/24/2011
Class Period Begin: 
03/01/2010
Class Period End: 
02/28/2011
Court of Filing: 
U.S. District Court for the District of New Jersey
Deadline To File for Lead: 
12/23/2011
Settlement Amount: 
$1,150,000
Deadline to Participate in Settlement: 
07/31/2014
Summary: 

September 28, 2016 - The court ordered the authorization of the distribution of the net settlement fund.

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.

May 12, 2014 - Parties filed a stipulation of settlement.

February 19, 2013 - The lead plaintiffs filed an amended complaint on behalf of investors who purchased Central European Distribution Corporation (NASDAQ: CEDC) common shares between March 1, 2010 and February 28, 2011. The lead plaintiffs allege that the defendants violated the Securities Act of 1933 by issuing false and misleading statements between March 1, 2010 and February 28, 2011.

August 22, 2012 - The lead plaintiffs and lead counsel were appointed and all cases were consolidated.

December 23, 2011 - Lead plaintiff motions were filed.

October 24, 2011 - An investor in shares of Central European Distribution Corporation (NASDAQ: CEDC) filed a lawsuit in the U.S. District Court for the District of New Jersey against Central European Distribution Corporation over alleged Violations of Federal Securities Laws.

According to the complaint the plaintiff alleges on on behalf of purchasers of the common stock of Central European Distribution Corp. between August 5, 2010 and February 28, 2011, that Central European Distribution Corporation and certain of its officers and directors violated the Securities Exchange Act of 1934 by issuing materially false and misleading statements regarding the Company's business and prospects.
While Central European Distribution’s annual Revenue rose from $398.05million in 07 to $711.54million in 2010, its Net Income fell from $77.10million in 07 to a Net Loss of $104.67million in 2010.

Shares of Central European Distribution Corporation (NASDAQ: CEDC) rose from as low as $6.47 per share in March 09 to almost $39 per share in April 2010.

Then on March 1, 2011, Central European Distribution Corporation issued a press release announcing its results for the full year 2010. The plaintiff alleges the company surprised the market and reporting a net loss from continuing operations on a U.S. Generally Accepted Accounting Principles 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, for the same period in 2009. Following the full year earnings announcement, so the lawsuit, defendants held a conference call with analysts and investors, wherein defendants disclosed for the first time an excise tax issue in production in Russia, where they had a dispute with authorities on an old excise stamp count, 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."
The plaintiff claims that in response to the unexpected earnings announcement, shares of Central European Distribution Corp (Public, NASDAQ: CEDC) fell $8.52, or more than 37%, to close at $14.33 per share, on extremely heavy trading volume.
In fact since April 2010 NASDAQ: CEDC shares lost nearly 80% of its value and traded recently under $6 per share.