Court Grants Final Approval to Settlement in Green Mountain Coffee Roasters, Inc. Securities Class Action

10/22/2018 - On October 22, 2018, the Honorable William K. Sessions III, a U.S. District Judge for the District of Vermont, granted final approval to the proposed settlement that the lead plaintiffs and defendants had reached in Louisiana Municipal Police Employees’ Retirement System et al. v. Green Mountain Coffee Roasters, Inc., et al., No. 2:11-cv-00289-WKS (D. Vt.).  The parties had entered into the Stipulation and Agreement of Settlement on June 18, 2018.  The proposed settlement was intended to resolve all claims of the Class, which includes all persons and entities who purchased or acquired common stock issued by Green Mountain Coffee Roasters, Inc. between February 2, 2011 and November 9, 2011, and were damaged thereby, in exchange for a payment of $36.5 million in cash for the benefit of the class.

On July 6, 2018, the Court entered a Preliminary Approval Order for the proposed settlement, which authorized the dissemination of the Notice and Proof of Claim form to potential class members.  Click here for a copy of the Notice, and here for a copy of the Proof of Claim form. 

On October 22, 2018, the Court granted final approval to the settlement.  During the hearing, Judge Sessions noted that lead counsel conducted the litigation and achieved the settlement with "skill, perseverance, and diligent advocacy."

The Court-appointed co-lead plaintiffs in the case were the Public Employees Retirement System of Mississippi, the Government Employees' Retirement System of the Virgin Islands, the Board of Trustees of the City of Fort Lauderdale General Employees' Retirement System, Sjunde AP-Fonden, and the Louisiana Municipal Police Employees' Retirement System.  BR&B was one of the lead counsel for the Class. The securities fraud class action alleged that during a nine-month period in 2011, Green Mountain and its management made a series of false and misleading statements and material omissions about the company’s inventory levels, business performance and growth prospects. In July 2015, the Second Circuit vacated the District Court’s ruling that dismissed the action, holding that the plaintiffs’ claims “articulate[d] defendants’ intent to craft a false growth story." Judge Sessions thereafter granted plaintiffs’ motion for class certification in July 2017 and the case proceeded through extensive document and deposition discovery before the parties reached agreement on the proposed settlement.

More information about the settlement can be found at: www.GreenMountainSecuritiesLitigation.com.