Lawsuit Overview
October 3, 2007 - The court granted defendants' motion to dismiss with prejudice.
April 16, 2007 - Defendants filed a motion to dismiss.
March 12, 2007 - The lead plaintiffs filed an amended consolidated complaint.
February 7, 2007 - The court granted defendants' motion to dismiss with leave to amend.
August 14, 2006 - Defendants filed a motion to dismiss.
June 30, 2006 - The lead plaintiffs filed an amended consolidated complaint on behalf of investors who purchased Coca-Cola Enterprises Inc (NYSE: CCE) common shares between October 15, 2003 and July 29, 2004. The lead plaintiffs allege that the defendants violated the Securities Exchange Act of 1934 by issuing false and misleading statements between October 15, 2003 and July 29, 2004.
May 22, 2006 - Lead plaintiffs and lead counsel were appointed and all cases were consolidated. The court granted defendants' motion to dismiss without prejudice.
May 8, 2006 - Defendants filed a motion to dismiss.
April 17, 2006 - Lead plaintiff motions were filed.
March 31, 2006 - Another investor filed a complaint.
February 7, 2006 - An investor in shares of Coca-Cola Enterprises Inc (NYSE: CCE) filed a lawsuit in the U.S. District Court for the Northern District of Georgia over alleged violations of Federal Securities Laws by Coca-Cola Enterprises Inc in connection with certain allegedly false and misleading statements made between October 15, 2003 and July 28, 2004.
The complaint alleges that the defendants violated Sections 10(b), 20(a) and 20A of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, by failing to disclose to the investing public that Coca-Cola Enterprises Inc had a longstanding and systemic practice of channel stuffing — forcing extra product onto its customers to boost revenue. Coca-Cola Enterprises Inc’s reported financial results and future earnings prospects were materially misleading without disclosure about Coca-Cola Enterprises Inc’s channel stuffing practices and how those practices affected Coca-Cola Enterprises Inc’s financial condition. The complaint also alleges that Coca-Cola Enterprises Inc’s channel stuffing resulted in the improper recognition of revenue in violation of GAAP.
While defendants were misrepresenting Coca-Cola Enterprises Inc’s financial condition, and Coca-Cola Enterprises Inc’s stock price climbed through October 15, 2003 and July 28, 2004, the individual defendants engaged in substantial insider trading. For example, defendant Johnston sold over $172 million worth of his Coca-Cola Enterprises Inc stock, representing 19.52% of his holdings or 6,481,082 shares. Defendant Mannelly sold approximately 372,396 shares of his Coca-Cola Enterprises Inc common stock, with proceeds totaling approximately $9,353,964, and defendant Van Houten sold approximately 225,953 shares of Coca-Cola Enterprises Inc common stock, for proceeds totaling approximately $6,123,757. Other individual defendants sold substantial amounts of Coca-Cola Enterprises Inc stock as well.
The complaint further alleges that on or around July 29, 2004, Coca-Cola Enterprises Inc made a partial corrective disclosure regarding Coca-Cola Enterprises Inc’s true financial condition and diminished future earnings prospects. Reacting to Coca-Cola Enterprises Inc’s disclosures, and the individual defendants’ insider trading activities, investors hammered Coca-Cola Enterprises Inc’s stock price on record trading volumes. Thus, by the close of business on July 29, Coca-Cola Enterprises Inc’s stock price fell by approximately 25% or $5 per share, erasing nearly $3.1 billion of Coca-Cola Enterprises Inc’s then $12.5 billion market capitalization.