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Case Status:    SETTLED
On or around 07/09/2018 (Ongoing date of last review)

Filing Date: November 29, 2011

According to the Complaint, Keurig Green Mountain, Inc. ("GMCR" or the "Company") and its subsidiaries operate in the specialty coffee and coffee maker businesses. The Company has achieved significant growth in recent years, driven by sales from its popular Keurig single-cup brewing system, which uses "K-Cup" portion packs to brew single servings of coffee and other beverages.

Three months prior to the start of the Class Period, on September 28, 2010, GMCR disclosed that it was the subject of an inquiry being conducted by the United States Securities and Exchange Commission (the "SEC") concerning revenue recognition practices and the Company's relationship with a key fulfillment vendor - M. Block & Sons ("MBlock". Within two months of disclosing the SEC's inquiry, GMCR announced a sweeping restatement of previously issued financial statements for fiscal 2006-2009 and the first three quarters of 2010.

Throughout the Class Period, the Company was portrayed to the investing public as a healthy and growing business, with rapidly increasing revenues and K-Cup sales. GMCR was frequently described as one of the hottest stories on the NASDAQ Global Market (''NASDAQ'') during the Class Period, with shares nearly quadrupling in price from January 2011 to September 2011.

The Complaint alleges that during the Class Period, Defendants systematically manipulated and strategically managed the Company's revenues. The fraudulent scheme at GMCR involved materially overstating the Company's revenues based on falsified sales orders-including through sham inventory shipments-for hundreds of millions of dollars in K-Cup and Keurig brewer products. GMCR booked "revenues" associated with these false sales orders and shipments as though they were real. These acts caused a ripple effect throughout the Company's financial statements, resulting in the material overstatement of multiple metrics on which investors and analysts relied, including the Company's profits, and inventory and product demand levels. Throughout the Class Period, Defendants also fraudulently overstated GMCR's assets in proportion to the Company's fictitious revenues by carrying the proceeds of dummy sales as assets on the Company's balance sheet. In short, GMCR essentially ran a shell game through MBlock, which it secretly controlled, to manufacture earnings during the Class Period.

This action seeks to recover the damages caused by Defendants' misconduct.

On April 27, 2012, the Court issued an Order appointing Lead Plaintiffs and Counsel. Lead Plaintiffs filed a consolidated Complaint on October 29. On November 5, Lead Plaintiffs filed a corrected consolidated Complaint.

Defendants filed a Motion to Dismiss the consolidated Complaint on March 1, 2013. On December 20, the Court issued an Order granting Defendants' Motion to Dismiss with prejudice. Plaintiffs filed a notice appealing the Order of dismissal on January 21, 2014. On August 18, 2015, the Court of Appeals vacated the District Court's judgment of dismissal, remanding for proceedings consistent with their opinion.

Plaintiffs filed a Motion for Class Certification on December 12, 2016. On July 21, 2017, the Court issued an Order granting the Motion for Class Certification. The parties entered into a Stipulation of Settlement on June 18, 2018. On July 6, 2018, the Court issued an Order granting preliminary approval of the Settlement.

COMPANY INFORMATION:

Sector: Consumer Non-Cyclical
Industry: Food Processing
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: GMCR
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. Vermont
DOCKET #: 11-CV-00289
JUDGE: Hon. William K. Sessions III
DATE FILED: 11/29/2011
CLASS PERIOD START: 02/02/2011
CLASS PERIOD END: 11/09/2011
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Bernstein Litowitz Berger & Grossmann LLP (New New York)
    1251 Avenue of the Americas, Bernstein Litowitz Berger & Grossmann LLP (New New York), NY 10020
    (212) 554-1400 (212) 554-1448 ·
  2. Lynn, Lynn & Blackman, P.C.
    76 St. Paul St., Suite 400, Lynn, Lynn & Blackman, P.C., VT 05401
    801-860-1500 802-860-1580 ·
No Document Title Filing Date
COURT: D. Vermont
DOCKET #: 11-CV-00289
JUDGE: Hon. William K. Sessions III
DATE FILED: 11/05/2012
CLASS PERIOD START: 02/02/2011
CLASS PERIOD END: 11/09/2011
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Barrack, Rodos & Bacine (Main office, Philadelphia)
    Two Commerce Square, 2001 Market Street, Suite 3300 , Barrack, Rodos & Bacine (Main office, Philadelphia), PA 19103
    215.963.0600 215.963.0838 · info@barrack.com
  2. Bernstein Litowitz Berger & Grossmann LLP (New New York)
    1251 Avenue of the Americas, Bernstein Litowitz Berger & Grossmann LLP (New New York), NY 10020
    (212) 554-1400 (212) 554-1448 ·
  3. Kessler Topaz Meltzer & Check LLP (Pennsylvania)
    280 King of Prussia Road, Kessler Topaz Meltzer & Check LLP (Pennsylvania), PA 19087
    610.667.7706 610.667.7706 · info@ktmc.com
  4. Lynn, Lynn & Blackman, P.C.
    76 St. Paul St., Suite 400, Lynn, Lynn & Blackman, P.C., VT 05401
    801-860-1500 802-860-1580 ·
No Document Title Filing Date