Green Mountain Coffee Securities Fraud Class Action Lawsuit

By Sarah Mirando | November 14, 2012

Category: Stocks & Securities Class Action Lawsuits

By Mike Holter

K-Cup Green Mountain Coffee Green Mountain Coffee Roasters, Inc. (NASDAQ: GMCR) investors have filed a consolidated class action securities lawsuit against the company, claiming they were misled about demand for Keurig and K-Cup products.

According to the consolidated securities fraud lawsuit, filed October 29, 2012 in Vermont federal court, “Unbeknownst to investors, and contrary to defendants’ statements that they were barely able to ship orders as they came in, Green Mountain Coffee Roaster’s warehouses were overflowing with unused and expiring coffee products that were not being sold to consumers.”

As a result, the company misled investors by overstating revenue “based on falsified sales orders” and using a third-party vendor to store overproduced, unsold products, investors claim in the class action lawsuit.

In addition to facing increasing competition from a number of companies, including grocery store chains, Green Mountain Coffee Roasters has been fighting a slew of securities fraud lawsuits, including one filed in 2010 after Green Mountain announced an SEC investigation. The company also faces a number of other shareholder lawsuits filed in both state and federal courts.

The latest Green Mountain securities fraud class action lawsuit consolidates several shareholder lawsuits filed by multiple pension funds that accuse the company of violating U.S. securities law. They seek to represent a proposed class of all investors that purchased Green Mountain shares between February 2, 2011 and November 9, 2011 – the day Green Mountain stock plunged 34 percent, erasing $3.1 billion in market value.

The Green Mountain Securities Class Action Lawsuit case is Louisiana Municipal Police Employees’ Retirement System v. Green Mountain Coffee Roasters, Case No. 11-00289, U.S. District Court, District of Vermont (Burlington.)

Were you a victim of stock fraud, securities fraud or investment fraud? You may have a case to file class action lawsuit against the parties responsible. Visit the Securities Fraud, Stock Fraud Investment Class Action Lawsuit Investigation for details.