According to the law firm press release, CEDC is one of the largest producers of vodka in the world and Central and Eastern Europe's largest integrated spirit beverage business. The Complaint alleges that, throughout the Class Period, defendants made false and/or misleading statements, as well as failed to disclose that: (1) the Company's reported net sales in the years ended December 31, 2010 and 2011 were materially inflated; (2) as a result of its failure to appropriately account for customer rebates, the Company anticipates restating its reported consolidated net sales, operating profit and related accounts receivable for these periods by approximately $30 to $40 million; and (3) as a result of the foregoing, the Company's statements were materially false and misleading at all relevant times.
On June 4, 2012, the Company disclosed that it estimates a reduction of its previously reported consolidated net sales, operating profit and related accounts receivable for the periods of January 1, 2010 through December 31, 2011 by approximately $30 to $40 million, due to the Company's failure to properly account for the retroactive trade rebates provided to the customers of its main operating subsidiary in Russia, the Russian Alcohol Group. On these revelations, CEDC shares declined $0.38 per share or approximately 10.7%, to close at $3.17 per share on June 5, 2012.
On September 4, 2012, the Court issued an Order transferring this action to the United States District Court for the District of New Jersey.
On November 8, 2012, the Court issued an Order de-consolidating this action from Civ. No. 11-6247. Furthermore, the Court ordered that Civ. No. 12-5531 shall be consolidated with this action.
On December 17, 2012, the Court issued an Order appointing lead plaintiff and approving the selection of lead counsel.
On February 15, 2013, the lead plaintiffs filed a consolidated and amended complaint.
On April 9, 2013, a Notice was filed of Defendant's bankruptcy filing and the imposition of an automatic stay.