BURLINGTON, Vt. (Legal Newsline) – A man is suing a coffeemaker and specialty coffee company over claims it damaged shareholders.
Kyle Montanio, individually and for all others similarly situated, filed a class-action lawsuit Jan. 27 in U.S. District Court for the District of Vermont Burlington Division against Keurig Green Mountain et al., alleging violations of the Securities Exchange Act.
The suit states the defendants disseminated a materially false and misleading proxy statement connected to Keurig's proposed buyout, which will make the company private and strip shareholders of their investment for allegedly inadequate and undervalued consideration.
The suit claims the buyout is simply an attempt by the buyout group to acquire Keurig for a bargain during a temporary downturn in the company's stock price.
The shareholder vote on the proposed buyout has been scheduled for Feb. 24, the suit states.
Montanio and others in the class seek equitable and injunctive relief to enjoin the shareholder vote until the defendants disclose material information they've been allegedly withholding regarding the transaction, plus compensatory and/or rescissory damages, interests, attorney fees and costs.
They are represented by attorney Philip Woodward of Woodward & Kelley in South Burlington, Vermont; attorneys Stuart A. Davidson, Mark J. Dearman, Christopher Martins, Randall J. Baron and David T. Wissbroecker of Robbins Geller Rudman & Dowd in Boca Raton, Florida and San Diego; and attorney Hamilton P. Lindley of Dunnam & Dunnam in Waco, Texas.
U.S. District Court for the District of Vermont Burlington Division Case number 5:16-cv-00019-GWC