Gilman Law LLP, a leading national securities law firm, is now accepting claims for lawsuits on behalf of Central European Distribution Co. shareholders. The firm is actively investigating shareholder claims that Central European Distribution Co. and its Board of Directors made materially false and misleading statements or failed to disclose material information related to the company’s business and operations in violation of the Securities Exchange Act of 1934. The firm is currently offering free legal evaluations to all Central European Distribution Co. investors nationwide.
For over 30 years, Gilman Law has represented investors in all major aspects of securities fraud litigation, including stock manipulation, securities fraud, and shareholder rights violations. If you purchased or otherwise acquired shares of Central European Distribution Co. (NASDAQ:CEDC) during the period between August 5, 2010 and February 28, 2011, and either lost money on the transaction or still hold the shares, you must contact Gilman Law LLP no later than December 23, 2011 in order to exercise your legal rights against CEDC.
Central European Distribution Co. Class Action Lawsuit Allegations
Central European Distribution Co. is a producer of vodka, and is Central and Eastern Europe’s largest integrated spirit beverages business. In its announcement of 2010 full year results made on March 1, 2011, CEDC reported a net loss from continuing operations of $92.9 million. During a conference call, Defendants also disclosed than an excise tax issue in Russia had resulted in the loss of two weeks of limited production runs. During one week in the middle of November, the Company’s “key selling period,” nothing was produced. This news caused CEDC shares to fall $8.52, to close at $14.33 per share.
A lawsuit seeking class action status has since been filed in the United States District Court for the District of New Jersey on behalf of purchasers of the common stock of Central European Distribution Corp. between August 5, 2010 and February 28, 2011. The complaint alleges that CEDC and its Board of Directors failed to disclose:
The Company had double digit declines in its vodka portfolio and its loss of market share in Poland was growing steeper;
The market share declines required that CEDC take an impairment charge which CEDC did not record on a timely basis;
The launch of CEDC’s new vodka product, Zubrowka Biala, which involved significant rebates, was having a materially adverse effect on gross margin.
The lawsuit further alleges Defendants lacked a reasonable basis for their positive statements about the company, its prospects and growth, and that these false statements caused CEDC’s stock to trade at artificially inflated prices during the Class Period.
Legal Help for Central European Distribution Co. Shareholders
Gilman Law has extensive experience representing both individual and institutional investors in securities class action suits, and has recovered over a billion dollars for its clients. We are ready to assist investors who have sustained losses as a result of Central European Distribution Co.’s fraudulent practices. For a free evaluation of your case or to obtain additional information, please fill out the form on the left or CALL TOLL FREE (888) 252-0048.
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