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.
