NEW YORK, Oct. 21, 2010 (GLOBE NEWSWIRE) -- Pomerantz Haudek Grossman & Gross LLP is investigating claims on behalf of investors of Green Mountain Coffee Roasters, Inc. ("Green Mountain" or the "Company") (Nasdaq:GMCR) during the period from July 28, 2010 through September 29, 2010 (the "Class Period"). Such investors are advised to contact Fei-Lu Qian at 888-476-6529 or flqian@pomlaw.com. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
Green Mountain sells whole bean and ground coffee selections, cocoa, teas and coffees in K-Cup portion packs, and also manufactures and markets gourmet single-cup brewing systems under the Keurig brand name. The investigation concerns whether the Company improperly recognized revenue and used an incorrect gross margin percentage to eliminate the inter-company markup for certain products at its Keurig business, which was decreasing cost of sales.
On September 28, 2010, Green Mountain disclosed that the U.S. Securities and Exchange Commission was conducting an inquiry related to certain of the Company's revenue recognition practices and that the Company had been using an incorrect gross margin percentage to eliminate the inter-company markup in its K-Cup inventory balance residing at its Keurig business unit, which had resulted in a lower margin applied to the Keurig ending inventory balance, effectively overstating consolidated inventory and understating cost of sales. As a result of this news, on September 29, 2010, Green Mountain's stock price declined $5.95 per share, or more than 16%, on unusually heavy trading volume.
The Pomerantz Firm, with offices in New York, Chicago, Washington, D.C., Columbus, Ohio and Burlingame, California, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.