ACHIEVEMENTS

CASE
SUCCESSES

Green Mountain Coffee Roasters: $36.5 Million Recovery in Inventory Fraud Case

This securities fraud class action in Vermont federal court involved allegations that Green Mountain and its former chief executive officer and chief financial officer misrepresented the true state of demand for the coffee giant’s products.  The investor class alleged that the defendants concealed the company’s ballooning inventory and slackening demand in order to prop up Green Mountain’s stock price, while the company’s CEO and CFO were engaged in massive insider selling, reaping tens of millions of dollars at the expense of shareholders.    

The case was resolved in 2018 for $36.5 million, following a significant appellate victory at the U.S. Court of Appeals for the Second Circuit which reversed the district court’s initial dismissal of the action and provided important guidance on the role of insider trading allegations in establishing scienter (or intent to defraud) under the federal securities laws.  This is believed to be the largest settlement of a securities suit in the history of the District of Vermont.

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