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Case Status:    SETTLED
On or around 09/22/2016 (Ongoing date of last review)

Filing Date: October 24, 2011

The complaint alleges that, during the Class Period, Defendants issued materially false and misleading statements regarding the Company’s business and prospects. Specifically, defendants misrepresented and/or failed to disclose the following adverse facts: (i) that the Company had double digit declines in its vodka portfolio and its loss of market share in Poland was growing steeper as discounters were taking shares; (ii) that the seriousness in the market share declines required that the Company take an impairment charge which the Company did not record on a timely basis; (iii) that the launch of the Company’s new vodka product with significant market spending in the form of rebates, was having a materially adverse effect on gross margin and impacted the channel mix in the market; and (iv) that, based on the foregoing, defendants lacked a reasonable basis for their positive statements about the Company, its prospects and growth.

On March 1, 2011, the Company issued a press release announcing its results for the full year 2010, surprising the market and reporting a net loss from continuing operations on a U.S. Generally Accepted Accounting Principles basis for the year of $92.9 million, or $1.32 per fully diluted share, as compared to a net profit of $72.7 million, or $1.35 per fully diluted share, for the same period in 2009. Following the full year earnings announcement, Defendants held a conference call with analysts and investors, wherein defendants disclosed for the first time an excise tax issue in production in Russia, where they had a dispute with authorities on an old excise stamp count, which resulted in the loss of two weeks of limited production runs, with one week having nothing produced in the middle of November, their “key selling period.” In response to the unexpected earnings announcement, shares of the Company’s stock fell $8.52, or more than 37%, to close at $14.33 per share, on extremely heavy trading volume.

On August 22, 2012, an Order Appointing Lead Plaintiff, Lead Counsel, and Consolidating the Related Actions was issued by the Court.

On November 14, 2012, a Memorandum Opinion and accompanying Order were issued by the Court denying the defendants Motion for interlocutory appeal.

On February 19, 2013, the lead plaintiffs filed an amended complaint.

On May 12, 2014, the parties entered into a Stipulation of Settlement. This Settlement was preliminarily approved by the Court on July 31. On November 14, the Court granted final approval of the Settlement and dismissed this case with prejudice.

COMPANY INFORMATION:

Sector: Consumer Non-Cyclical
Industry: Beverages (Alcoholic)
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: CEDC
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: D. New Jersey
DOCKET #: 11-CV-06247
JUDGE: Hon.Jerome B. Simandle
DATE FILED: 10/24/2011
CLASS PERIOD START: 08/05/2010
CLASS PERIOD END: 02/28/2011
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Law Offices of Bernard M. Gross (Philadelphia)
    John Wanamaker Building; 100 Penn Square East, Suite 450, Law Offices of Bernard M. Gross (Philadelphia), PA 19107
    215.561.3600 215.561.3600 · susang@bernardmgross.com
  2. Robbins Geller Rudman & Dowd LLP (Melville)
    58 South Service Road, Suite 200, Robbins Geller Rudman & Dowd LLP (Melville), NY 11747
    631.367.7100 631.367.1173 ·
No Document Title Filing Date
COURT: D. New Jersey
DOCKET #: 11-CV-06247
JUDGE: Hon.Jerome B. Simandle
DATE FILED: 02/19/2013
CLASS PERIOD START: 03/01/2010
CLASS PERIOD END: 02/28/2011
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Barrack, Rodos & Bacine (Newark)
    One Gateway Center, Suite 2600, Barrack, Rodos & Bacine (Newark), NJ 07102
    973.297.1484 973.297.1484 ·
  2. Cohen Milstein Sellers & Toll PLLC (Washington DC)
    1100 New York Avenue, N.W., Suite 500, West Tower, Cohen Milstein Sellers & Toll PLLC (Washington DC), DC 20005
    202.408.4600 202.408.4600 ·
No Document Title Filing Date