On May 12, 2008, the plaintiff filed a Notice of Voluntary Dismissal Without Prejudice. On May 14, 2008, U.S. District Judge Kenneth L. Ryskamp issued the Order closing the case.
The complaint alleges that Bravo CEO and Chief Accounting Officer violated the Securities Exchange Act of 1934. During the Class Period, Bravo concealed that its sole distributor, Coca Cola Enterprises, Inc. ('CCE'), had drastically cut its demand for Bravo's milk-drinks. (Bravo sold its products under the brand names Slammers and Bravo.) Bravo also failed to timely disclose that it had defaulted on interest payments to senior note holders.
Specifically, the complaint alleges that Bravo falsely told investors on April 3, 2007, that it had expanded its drink products by introducing the first milk-based sports drink. Only one month later, Bravo announced that it would substantially reduce its workforce, that it would not roll out brands into new channels of distribution, and that its sales with CCE had declined substantially in April and May 2007. On May 15, 2007, the last day of the Class Period, Bravo announced that it had recognized a $17.6 million non-cash impairment charge during the quarter ended March 31, 2007. On September 21, 2007, Bravo filed for bankruptcy.