Gilman Law Investigates Lawsuit Against Central European Distribution Corp.
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Gilman Law LLP, a leading national securities law firm, is actively investigating shareholder allegations that Central European Distribution Corp. (“CEDC”) and certain of its officers and directors violated the Securities Exchange Act 1934. CEDC operates primarily in the alcohol beverage industry and is one of the largest producers of vodka in the world.
For over 30 years, the lawyers at Gilman Law have been involved in all major aspects of securities fraud litigation. The firm specializes in cases involving stock manipulation, securities fraud, and shareholder rights violations. If you purchased or otherwise acquired shares of the common stock of CEDC (NASDAQ: CEDC) between August 5, 2010 and February 28, 2011 and either lost money on the transaction or still hold the shares, you may contact Gilman Law LLP, by no later than December 23, 2011 to discuss your rights, including as to recovery of your losses or to obtain additional information.
Failure to Disclose Information
A class action lawsuit has been commenced in the United States District Court for the District of New Jersey on behalf of purchasers of CEDC. The Complaint alleges that CEDC issued materially false and misleading statements regarding the Company’s business and prospects during the Class Period. CEDC allegedly failed to disclose that the Company had double digit declines in its vodka portfolio and its loss of market share in Poland was growing steeper. The suit further alleges that the Company failed to record an impairment charge on a timely basis as a result of the market share decline. In addition, CEDC failed to disclose that the launch of their new vodka product, Zubrowka Biala was having a materially adverse effect on gross margin. As a result, Defendants lacked a reasonable basis for their positive statements about the Company and its prospects.
Artificially Inflated Stock Prices
CEDC’s misleading financial data in combination with the misleading information concerning their launch of their new product and increased sales force, led to artificially inflated prices during the Class Period. In response to the unexpected earnings announcements, shares of CEDC fell $8.52, or more than 37% to close at $14.33 per share on a extremely heavy trading volume.
Gilman Law has extensive experience representing both individual and institutional investors in securities class action suits. Gilman Law has recovered over a billion dollars for its clients and can help you recover any losses that you have incurred as a result of CEDC’s fraudulent practices. For a free evaluation of your case or to obtain additional information, please complete the certification form above or CALL TOLL FREE (888) 252-0048.