CASES
Central European Distribution Corporation
Class Period: Aug 5, 2010 to Feb 28, 2011
Lead Plaintiff Deadline: Dec 24, 2011 + Deadline passed
Summary of Case:
A securities class action has been filed against Central European Distribution Corporation ("CEDC" or the "Company") on behalf of all who purchased or otherwise acquired CEDC common stock between August 5, 2010 and February 28, 2011. This case has been filed in the USDC - New Jersey.
During the Class Period, defendants issued materially false and misleading statements regarding the Company's business and financial results.
In a press release dated March 1, 2011, CEDC announced its results for the full year 2010, surprising the market and reporting a net loss from continuing operations on a U. S. Generally Accepted Accounting Principles ("GAAP") basis for the year of $92.9 million, or $1.32 per fully diluted share, as compared to a net profit of $72.7 million, or $1.35 per fully diluted share, for the same period in 2009. The Company reported net income from continuing operations of $38.7
million, or $0.55 per fully diluted share, for the full year 2010, as compared to $118.9 million, or $2.20 per fully diluted share, for the same period in 2009 and previous guidance of earnings per share ("EPS") of between $1.50 and $2.20 per share. The loss was due in part to an impairment charge.
In response to the unexpected earnings announcement, shares of the Company's stock fell $8.52, or more than 37%, to close at $14.33 per share, on extremely heavy trading volume. The complaint further alleges the defendants concealed from the investing public during the Class Period that were that the Company was presenting its financial statements in violation of GAAP, causing its financial results to be materially misstated.
As a result of defendants' false statements, CEDC's securities traded at artificially inflated levels during the Class Period. After the above revelations seeped into the market, the price of CEDC common stock was hammered by massive sales, sending them down nearly 48% from their Class Period high of $27.44 per share on December 2, 2010.
If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.