Cohen Milstein Recommended to be Lead Counsel in Central European Distribution Corporation Litigation
On June 14, 2012, Magistrate Judge Karen M. Williams for the United States District Court for the District of New Jersey recommended that Cohen Milstein be appointed lead counsel in a class action lawsuit against Central European Distribution Corporation ("CEDC"). Magistrate Judge Williams also recommended that the Arkansas Public Employees' Retirement System and the Fresno County Employees' Retirement Association be appointed as lead plaintiffs.
This litigation is brought against CEDC, a global business that operates primarily in the alcoholic beverage industry, on behalf of a purported class of investors that purchased or otherwise acquired securities of CEDC between August 5, 2010 and February 28, 2011. The lawsuit, alleges that the company misled investors by misrepresenting its business prospects, especially with regard to its business in Poland.
The lawsuit claims that CEDC failed to timely disclose material information to investors, including declines in its vodka portfolio, especially in Poland, and negative financial results from the launch of Zubrowka Biala, a new vodka product.
On March 1, 2011, the company issued a press release announcing financial results for 2010. The company reported net losses exceeding $90 million, shocking investors. The company’s stock fell more than 37 percent, down more than $8.50 per share, according to the complaint.
Report and Recommendation - June 14, 2012 [PDF]