PHILADELPHIA, Oct. 25, 2011 (GLOBE NEWSWIRE) -- Law Offices Bernard M. Gross, P.C. filed a class action lawsuit in the United States District Court, District of New Jersey, 11cv06247, before Judge Jerome Simandle, on behalf of all persons who purchased or otherwise acquired the common stock of Central European Distribution Corp. (Nasdaq:CEDC) between August 5, 2010 and February 28, 2011, against the Company, William Carey and Christopher Biedermann for violation of the Securities Exchange Act of 1934.
If you wish to serve as lead plaintiff, you must move the Court no later than December 23, 2011. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of its choice, or may choose to do nothing and remain an absent class member. If you wish to discuss this action or any questions concerning this notice, please contact plaintiff's counsel, Deborah R. Gross or Susan R. Gross at 866-561-3600 or via email at debbie@bernardmgross.com or susang@bernardmgross.com. A copy of the complaint can be viewed at www.bernardmgross.com.
CEDC is one of the largest producers of vodka in the world. The Complaint alleges that throughout the Class Period, defendants failed to disclose that CEDC had double digit declines in its Vodka portfolio and its loss of market share in Poland was growing steeper as discounters were taking shares; the seriousness in the market share declines required that CEDC take an impairment charge which defendants caused CEDC not to record on a timely basis; and the launch of the new product, Zubrowka Biala, with significant market spending in the form of rebates, was having a materially adverse effect on gross margin and impacted the channel mix in the market.
On 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 basis for the year of $92.9 million, or $1.32 per share, as compared to a net profit of $72.7 million, or $1.35 per share, for 2009. Then, defendants held a conference call with analysts and investors, wherein disclosed for the first time was a Russian excise tax issue in production. Defendants had a dispute with authorities on an old excise stamp count, which resulted in the loss of two weeks of limited production runs, with one week having nothing produced in the middle of November, their "key selling period." 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.
Plaintiffs are represented by Law Offices Bernard M. Gross, P.C. The firm has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Any questions, Please Contact:
Law Offices Bernard M. Gross, P.C.
Susan R. Gross, Esquire
Deborah R. Gross, Esquire
Telephone: 866-561-3600 (toll free)
E-mail: susang@bernardmgross.com or
debbie@bernardmgross.com.
Website: http://www.bernardmgross.com ;