LAWSUITS NEWS & LEGAL INFORMATION
Central European Distribution Corporation CEDC Securities Lawsuit
|Company:||Central European Distribution Corporation|
|Class Period:||Mar-1-10 to Jun-4-12|
|Lead Plaintiff Deadline:||Aug-13-12|
|Court:||Southern District of New York|
CEDC, a Delaware corporation headquartered in Mount Laurel, New Jersey, operates primarily in the alcohol beverage industry. The Company is one of the largest producers of vodka in the world and is Central and Eastern Europe's largest integrated spirit beverage business. The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements regarding the Company's business operations, financial condition and prospects. Specifically, the Complaint alleges that: (1) the Company's reported net sales in the years ended December 31, 2010 and December 31. 2011 were materially inflated; and (2) as a result of its failure to appropriately account for customer rebates, the Company anticipates restating its reported consolidated net sales, operating profit and related accounts receivable for these periods by approximately $30 to $40 million. As a result of defendants' false and misleading statements, the Company's stock traded at artificially inflated prices during the Class Period.
According to the Complaint, on June 4, 2012, the Company issued a press release disclosing that it expected to restate its financial results for all reporting periods from and after January 1, 2010. Following the change in its senior management at its main operating subsidiary in Russia, the Russian Alcohol Group ("RAG"), during April 2012, senior CEDC management requested that the new management team review RAG's business operations and internal controls, including an assessment of the resources and needs of the corporate finance and reporting departments, as identified in Item 9A of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2011. As a result of the preliminary findings of that review, senior CEDC management determined that CEDC's reported net sales in the years ended December 31, 2010 and 2011 failed to reflect the timely reporting of the full amount of retroactive trade rebates provided to RAG's customers in Russia.
In addition, the Company announced that it is reviewing whether any adjustments would also need to be made to the Company's financial statements for the year ended December 31, 2009. In the release, CEDC estimated that the aggregate effect of the adjustments identified to date would result in a reduction of its consolidated net sales, operating profit and related accounts receivable from January 1, 2010 through December 31, 2011 of approximately $30 to $40 million. On this news, shares of CEDC common stock dropped over 10%, closing at $3.17 per share on June 5, 2012 from $3.55 the previous day, on unusually heavy trading volume of over 3 million shares.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
Central European Distribution Corporation CEDC Securities Fraud Legal HelpIf you have suffered from financial losses, you may qualify for damages or remedies that may be awarded in a possible Central European Distribution Corporation securities class action lawsuit. Please click the link below to submit your complaint for a free evaluation.
Published on Jun-15-12
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