A New Jersey federal judge Wednesday appointed Cohen Milstein Sellers & Toll lead counsel in a class action securities fraud lawsuit against Central European Distribution Corporation (CEDC). The ruling by Chief U.S. District Judge Jerome B. Simandle also appointed the Arkansas Public Employees Retirement System and the Fresno County Employees’ Retirement Association as lead plaintiffs in the case.
“We are very pleased with Judge Simandle’s decision, which confirms that Arkansas and Fresno are well-qualified to represent the interests of the Class and recognizes that Cohen Milstein will vigorously and effectively prosecute the claims in this case,” said Daniel S. Sommers, one of the lawyers for Plaintiffs.
“We are glad to be past this preliminary stage of the case and look forward to litigating the merits of the claims,” said Cohen Milstein managing partner Steven J. Toll. “We believe investors were misled by defendants’ misrepresentations and our goal is to recover as much of their losses as we can.”
CEDC is primarily an importer and exporter of alcoholic beverages. CEDC is one of the largest vodka producers in the world and has the largest “integrated spirit business” in Central and Eastern Europe.
Plaintiffs allege that CEDC and certain of its officers and directors issued materially false and misleading statements regarding CEDC’s business and prospects that deceived investors and caused Plaintiffs to purchase the stock at artificially inflated prices. 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, causing Plaintiffs’ losses.
Additional information about the case is available online at http://www.cohenmilstein.com/cases/285/central-european-distribution-centers-corporation-securities-litigation.