Glancy Prongay & Murray LLP, a national law firm based in Los Angeles, US with offices in New York and Berkeley, announces that it is investigating potential claims on behalf of investors of Keurig Green Mountain, Inc. concerning the Company’s recent disclosures regarding slowdowns in the sale of the Company’s Keurig 2.0 brewer; as well as the announcement that the Company would delay the launch of its newest product offering the Keurig Kold brewer.
On May 7, 2015, the Company announced revenues and earnings that fell below analysts’ expectations; projected flat to low-single digit year-over-year net sales growth, compared to its previous guidance of mid-to high-single digit growth; and also reduced its free cash flow range to $120 million to $170 million, down from an expected range of $225 million to $325 million.
Keurig blamed its poor performance on confusion about pod compatibility with the Keurig 2.0 brewer, and on issues with partnerships in its K-cup brand coffee and tea offerings.
On this news the Company’s shares fell $9.92 per share, or 9%, to close on May 7, 2015 at $98.16 on volume of nearly 10 million shares.
Then, on May 14, 2015, after the market closed, the Company announced that it would delay the retail sale of the Company’s new cold brewing system, the Keurig Kold until the 2016 holiday season. On this news, the Company’s shares fell sharply in after-hours trading.
