A current long term investor in investor in Green Mountain Coffee Roasters Inc. (NASDAQ: GMCR) filed a lawsuit against certain former and current officers and directors of Green Mountain Coffee Roasters over alleged breaches of fiduciary duties. The lawsuit follows another lawsuit by investors in Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR), who purchased their GMCR common stock between July 28, 2010 and September 28, 2010, over alleged violations of Federal Securities Laws by Green Mountain Coffee Roasters, Inc.

According complaint filed in the United States District Court for the District of Vermont the plaintiff alleges on behalf of those investors, who purchased Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) common stock between July 28, 2010 and September 28, 2010, that Green Mountain Coffee Roasters, Inc. violated the Securities Exchange Act of 1934 by issuing between July 28, 2010 and September 28, 2010 a series of materially false and misleading statements related to Green Mountain Coffee Roasters business and operations. The plaintiff alleges that Green Mountain Coffee Roasters artificially inflated its stock price between July 28, 2010 and September 28, 2010 by issuing inaccurate and unreliable financial statements, which were not prepared in accordance with GAAP and SEC rules.

The Complaint further alleges that on August 28, 2010, Green Mountain completed a sale of 8,566,649 shares of its common stock to Luigi Lavazza, for an aggregate purchase price of $250 million, despite the fact that Green Mountain Coffee Roasters knew its reported financial statements were untrue and that it lacked adequate systems of internal operational and financial controls. The lawsuit on behalf of current long term investors concerns certain defendants’ illegal plan to sell almost $200million worth of their personally held stock at inflated prices.

Then on September 28, 2010, Green Mountain Coffee Roasters disclosed in a Form 8-K filed with U.S. Securities and Exchange Commission (“SEC”) that on September 20, 2010, the SEC’s Division of Enforcement informed Green Mountain Coffee Roasters that the SEC was conducting an inquiry and made a request for a voluntary production of documents and information.

Further, it was disclosed that Green Mountain Coffee Roasters had been notified by the SEC of this investigation as early as September 20, 2010. Green Mountain Coffee Roasters disclosed that in connection with the preparation of its financial results for its fourth fiscal quarter, its management discovered an accounting error “relating to the margin percentage it had been using to eliminate the inter-company markup in its K-Cup inventory balance residing at its Keurig business unit”.

Shares of Green Mountain Coffee Roasters Inc. (NASDAQ: GMCR) traded on September 28, 2010 at close to $38 per share before declining to $30.66 per share or by almost 20% on September 29, 2010. GMCR shares recently traded at $29.34 per share.