Insiders

Hagens Berman Reminds Investors That 40 Days Remain Before Deadline in Case against Green Mountain Coffee Roasters

December 21, 2011 at 08:00 pm EST

MarketScreener.com By

BERKELEY, Calif., Dec. 21, 2011 /PRNewswire/ -- Hagens Berman today reminds investors that only 40 days remain before the Jan. 30, 2012, lead plaintiff deadline in a securities class-action filed against Green Mountain Coffee Roasters (NASDAQ: GMCR) following the allegations against GMCR by Hedge Fund Manager David Einhorn. In a Reuters interview published today, Einhorn took an even harder line against Green Mountain, calling a recent audit committee report nothing more than a "whitewash."

Investors with losses greater than $200,000 who purchased GMCR common stock between Feb. 2, 2011 and Nov. 9, 2011, or who acquired stock as part of a public offering on or about May 5, 2011, are encouraged to contact Partner Reed R. Kathrein by calling (510) 725-3000 or by emailing GMCR@HBSSlaw.com. Investors can also contact the firm online and learn more about the case by visiting www.HBSSlaw.com/GMCR.

Green Mountain's shares slumped almost 25 percent after analyst David Einhorn warned on Oct. 17, 2011 about weaknesses in the company's business model and that its accounting was suspect. Then, on Nov. 9, 2011, GMCR announced disappointing earnings results and skyrocketing inventory. On this news, GMCR's shares plummeted an additional 40 percent, from a close of $67.02 on Nov. 9, 2011 to a close of $40.89 on Nov. 10, 2011.

"We will continue to investigate this matter to determine if Mblock helped GMCR hide inventory," said Mr. Kathrein. "GMCR's discussion of the SEC inquiry in its Nov. 14 10-K is also troubling. Inquiries don't normally last a year--but by now should have been converted to a full investigation. GMCR's statement that it is unable to predict the outcome is disturbing given the contradictory claims of the audit committee."

Whistleblowers

Persons with knowledge that may help the investigation are encouraged to contact the firm. The SEC recently finalized new rules as part of its implementation of the whistleblower provisions in the Dodd-Frank Wall Street Reform Bill. The new rules protect whistleblowers from employer retaliation and allow the SEC to reward those who provide information leading to a successful enforcement with up to 30 percent of the recovery.

About Hagens Berman

Seattle-based Hagens Berman Sobol Shapiro LLP is an investor-rights class-action law firm with offices in 10 cities. In addition to investors, the firm represents whistleblowers, workers and consumers in complex litigation. More about the law firm and its successes can be found at www.hbsslaw.com. The firm's securities law blog is at www.meaningfuldisclosure.com.

SOURCE Hagens Berman LLP

David Einhorn

In 1981, David Einhorm is graduated from Cornell University (New York) where he passed with distinction in all subjects. He is the CEO of Greenlight Capital, a hedge fund which he created in 1996 with a million dollar. In 2008, his fortune was estimated about six billion dollars.

Principally short-seller, the fund’s strategy is lucrative, its profitability was around 26% a year since 1996.

The name of David Einhorm is closely related with the short sale. Even if he appears as a long-term investor, David Einhorm is adulated for his hit-and-run offensives and his bear speculations. Best examples are Allied Capital and Lehman Brothers.

In 2002, during a conference fir a charitable institution, organized by Tomorrows Children’s Fund, David Einhorm presents Allied Capital as an opportunity to sell. While a significant number of indications tend to prove this declaration, Allied Capital blows off steam against David Einhorm. During the struggle, David Einhorm is subjected to underhand tricks (SEC investigation on David Einhorm and his wife’s dismissal at Barron’s, stolen phone records…). David Einhorm wrote a book about this affair: “Fooling some of the people all the time”.

In 2007, he spots before anyone else the pitiful situation of the company Lehman Brothers and while others hedge funds do not say anything, he speaks into microphones.

In May 2008, during another charity event, David Einhorm launches a diatribe against the investment bank accused of hiding the truth about its accounts. A few days later, the equity drops and David Einhorm wins $ 1 billion.

When his detractors accuse him of precipitating the death of his prey, he affirms being an activist for financial transparency.

David Einhorm is also the CEO of Greenlight Capital RE Ltd, based in the Cayman Islands, specializing in reinsurance. He is one of the principal shareholders of the company.

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Linked companies
Greenlight Capital, Inc. Greenlight Capital, Inc. Investment ManagersFinance Greenlight Capital, Inc. is an independent, SEC-registered investment advisor and hedge fund manager headquartered in New York City. The firm was founded by David Einhorn in 1996. Greenlight Capital provides investment advisory services to the Greenlight “Capital Funds”.	Chief Executive Officer
GREEN BRICK PARTNERS, INC.	Founder