Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) Investor Files Class Action Lawsuit over Alleged Securities Laws Violations Over Missed Second Quarter Sales Estimates
May 07, 2012 (Shareholders Foundation) -- An investor in NASDAQ:GMCR shares filed a lawsuit in the U.S. District Court for the District of Vermont over alleged violations of Federal Securities Laws in connection with certain statements over Green Mountain Coffee Roasters’ second quarter 2012 financial estimates.
According to the complaint the plaintiff alleges on behalf of purchasers of Green Mountain Coffee Roasters, Inc. (NASDAQ:GMCR) common stock during the period between February 2, 2012 and May 2, 2012, that Green Mountain Coffee Roasters Inc. and certain of its officers and directors violated the Securities Exchange Act of 1934. Specifically, the plaintiff alleges that defendants issued materially false and misleading statements regarding the Company’s growth and demand for its products.
The plaintiff claims that, among other things, defendants misrepresented and/or failed to disclose that demand for the Company’s brewers and portion packs had slowed and that the Company’s models for predicting consumer demand were flawed and ineffective.
On May 2, 2012, Green Mountain Coffee Roasters Inc. reported its Second Quarter Fiscal Year 2012 Results. Among other things, Green Mountain Coffee Roasters missed second quarter sales estimates. It said its second quarter Fiscal Year 2012 Net Sales were up 37%, compared to an estimated growth of 45-50%. In addition Green Mountain Coffee Roasters revised estimates for its fiscal year 2012.
Following the announcement shares of Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) fell from $49.52 per share on May 2, 2012 to $24.91 per share on May 3, 2012.
NASDAQ:GMCR shares closed on May 7, 2012 at $24.30per share, significantly down from its current 52weeksHigh of $115.98 per share.