SAN DIEGO and WATERBURY,
Vt., June 24, 2015
/PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP
announces that a federal securities fraud class action complaint
has been filed in the U.S. District Court for the Northern District
of California. The complaint alleges that officers and
directors of Keurig Green Mountain, Inc. (NASDAQ: GMCR) violated
the Securities Exchange Act of 1934 between February 4, 2015 and May
6, 2015, by making materially false and misleading
statements about Keurig's business prospects. Keurig produces
and sells specialty coffee, coffeemakers, teas, and other beverages
in the United States and
Canada.
View this information on the law firm's Shareholder Rights
Blog:
www.robbinsarroyo.com/shareholders-rights-blog/keurig-green-mountain-inc
Keurig Misrepresents Its Business Practices
According to the complaint, defendants failed to disclose that
the Company's sales projections were unrealistic and unattainable
due to consumer confusion over the Keurig 2.0 brewing system.
The complaint further alleges that defendants did not reveal that
the retail distribution of the Company's new cold brewing system,
Keurig Kold, was delayed.
Keurig's original brewer uses single-serve canisters, whereas
the Keurig 2.0, released in August
2014, allows users to brew a carafe of coffee. On
February 4, 2015, the Company
indicated that consumer confusion as to which brands of
coffee the Keurig 2.0 system could brew negatively impacted the
Company's financial performance. The Company also stated that
its plans for Keurig Kold were progressing well and it was on track
to launch in the fall of 2015.
On May 6, 2015, the Company issued
a press release revealing that sales growth fell below its
previously stated expectations, primarily due to the slow
transition to the Keurig 2.0 system. The Company stated that
point of sale results were not as strong as anticipated, which led
to higher levels of inventory in retail stores. An article in
Bloomberg Business published the same day noted that sales
volume for the brewers declined 22% last quarter, underscoring the
slow adoption of the Keurig 2.0. 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 during which it revealed the Keurig Kold would be sold
online and in certain stores in the fall of 2015, but would not be
available in all its retail outlets until 2016. On this news,
Keurig shares fell $8.82 per share,
or over 8%, to close at $94.26 per
share on May 15, 2015.
Keurig Shareholders Have Legal Options
Concerned shareholders who would like more information about
their rights and potential remedies can contact attorney
Darnell R. Donahue at (800)
350-6003, DDonahue@robbinsarroyo.com, or via the shareholder
information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in
shareholder rights law. The firm represents individual and
institutional investors in shareholder derivative and securities
class action lawsuits, and has helped its clients realize more than
$1 billion of value for themselves
and the companies in which they have invested.
Attorney Advertising. Past results do not guarantee a
similar outcome.
Contact:
Darnell R. Donahue
Robbins Arroyo LLP
600 B Street, Suite 1900
San Diego, CA 92101
DDonahue@robbinsarroyo.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com
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SOURCE Robbins Arroyo LLP