Keurig Settles Securities Fraud Class Action For $36.5 Million

June 25, 2018 by

Keurig Green Mountain Inc. has agreed to settle a securities fraud suit that accused the company and two executives of misleading shareholders about sales and revenue expectations in 2011. The settlement is for $36.5 million.

Keurig was accused of making representations of high demand for its single-serve coffee containers, called K-Cups, but had to reveal in November 2011 that much of that growth had merely built up its inventory. The shareholders said the disclosure sent the company’s stock price tumbling 39 percent, over $26 per share, and sought damages.

The case is Louisiana Municipal Police Employees’ Retirement System et al. v. Green Mountain Coffee Roasters Inc. et al., case number 2:11-cv-00289, in the U.S. District Court for the District of Vermont.

Steve Larson
An experienced trial lawyer who handles both hourly and contingent fee cases, Steve has expertise in class actions, consumer cases, antitrust litigation, securities litigation, corporate disputes, intellectual property disputes, unfair competition claims, employment matters, and disputes involving family wealth. Steve regularly represents individuals and businesses in federal and state court and has obtained class-wide recovery in multiple class actions. A veteran practitioner, Steve's clients value his creative approach to resolving complex litigation matters.

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