Lead Plaintiffs Jerry Warchol, Robert
Nichols, Loren Marc Schmerlerand Mike Shanley ("Plaintiffs" or "Lead Plaintiffs"), have alleged the following based upon theinvestigation
Plaintiffs' counsel, which included information obtained from confidentialwitnesses, including former Green Mountain Coffee Roasters, Inc. ("GMCR" or the "Company")and M.Block
Sons, Inc. ("MBlock") employees, a review
United States Securities andExchange Commission ("SEC") filings
regulatory filings and reports,securities analysts' reports and advisories about the Company, and media reports, press releases andother public statements issued
or about the Company. Plaintiffs believe that substantial additionalevidentiary support will exist for the allegations set forth herein after a reasonable opportunity fordiscovery.
NATURE OF THE ACTION
This is a federal securities class action on behalf
the common stock
between July 28, 2010 and September 28, 2010, inclusive (the "Class Period"), seeking
pursue remedies under the Securities Exchange Act
1934 (the "Exchange Act").
Defendant GMCR is engaged in the specialty coffee and coffee maker business,selling a variety
whole bean and ground coffee, cocoa, and teas under more than a dozen brandnames. The Company's business is largely concentrated in the manufacture and marketing
gourmet single-cup coffee and tea brewing systems under the Keurig brand name. The Keurigbrewing system consists primarily ofK-Cups, or single-cup brewing packages, and K-Cup brewersand related accessories, which, during fiscal2010, respectively accounted for approximately 62%and 24%
the Company's total revenue.
This case concerns deceptive accounting and financial reporting practices at GMCR.As detailed further herein, GMCR has admitted
certain improper accounting practices, which areprimarily associated with the Company's reporting
revenue, and has restated its previously issuedfinancial statements. In addition, the Company has also reported that the SEC has an on-going
Case 2:10-cv-00227-wks Document 72 Filed 04/30/12 Page 2 of 62