NEW YORK, June 23, 2015 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against Keurig Green Mountain, Inc. (“Keurig” or the “Company”) (Nasdaq:GMCR) and certain of its officers. The class action, filed in United States District Court, Northern District of California, is on behalf of a class consisting of all persons or entities who purchased Keurig securities between February 4, 2015 and May 14, 2015 inclusive (the “Class Period”). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the “Exchange Act”).
If you are a shareholder who purchased Keurig securities during the Class Period, you have until August 18, 2015 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
Keurig produces and sells specialty coffee, coffeemakers, teas, and other beverages in the United States and Canada. It sources, produces, and sells coffee, hot cocoa, teas, and other beverages under various brands in K-Cup, Vue, Rivo, K-Carafe, and Bolt portion packs brands; and coffee in traditional packaging, including bags and fractional packs, as well as offers whole bean and ground coffee in bags, fractional packages, and cans.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) Defendants’ projections for sales were unrealistic and unattainable given the continuing consumer confusion over the Company’s Keurig 2.0 brewing system; (2) the retail distribution of Company’s new cold brewing system, Keurig Kold, would be delayed; and (3) as a result, Defendants’ statements about Keurig’s business, operations, and prospects were false and misleading and/or lacked a reasonable basis.
On May 6, 2015, the Company issued a press release aftermarket announcing its financial results for the fiscal second quarter of 2015. The press release revealed that the Company’s sales growth for the quarter fell below its previously stated expectations. On that same day, Bloomberg Business published an article concerning the slow sales of the Keurig 2.0 brewing system for the quarter.
On this news, shares of Keurig fell $9.92 per share or over 9% to close at $98.16 per share on May 7, 2015.
On May 14, 2015, the Company held a webcast aftermarket concerning Keurig Kold. During the webcast, Defendant Kelley revealed Keurig Kold will be sold online and in certain stores starting this fall, but won’t be available in all its retail outlets until next year.
On this news, shares of Keurig fell $8.82 per share or over 8% to close at $94.26 per share on May 15, 2015, damaging investors.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los Angeles, 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.