MONTPELIER, Vt. (AP) — A Louisiana retirement fund is suing Vermont's Green Mountain Coffee Roasters Inc. after the value of the company's stock dropped following a critical report about its operations and a lower-than-expected earnings report.
The lawsuit filed last week in U.S. District Court in Burlington by the Louisiana Municipal Police Employees' Retirement System alleges Green Mountain overstated the company's successes and the subsequent drop in stock price wiped out billions of dollars in shareholder value.
The Waterbury-based company that sells the single-serve Keurig K-cup portions and other products has been experiencing rapid growth.
The stock fell dramatically after an analyst claimed it was overvalued, but in the last few weeks the stock has recovered some of its value after other analysts said the company remained sound.
The company has denied wrongdoing.
