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Showing posts from July, 2011

Is Green Mountain Coffee Roasters serving double talk to the press?

Green Mountain Coffee Roasters (NASDAQ: GMCR) seems to believe its Investor Relations Department can double talk the press and no one will ever notice. Yesterday, the Burlington Free Press published an article questioning whether the company’s stock was “Hot or Overheating?” According to that article:

Suzanne DuLong, Green Mountain’s vice president of corporate communications, said Green Mountain Coffee Roasters does not comment on its stock price.
Oh really?

Just a month earlier, on June 15, 2011 Suzanne DuLong was interviewed by Seven Days about the ongoing Securities and Exchange Commission probe of the company, class action lawsuits, various new accounting irregularities uncovered in this blog, and possible Regulation FD violations uncovered by best-selling author Roddy Boyd. According to Seven Days:

DuLong wouldn’t comment on claims made in the shareholder lawsuit, either, but noted: “I would suggest that you perhaps look at where the stock price was trading at the point that law…

Overstock admits to deceptive advertising

O.co, also known as Overstock.com, (NASDAQ: OSTK) has admitted to a key allegation leveled against it in a lawsuit brought by several California District Attorneys alleging consumer fraud, according to court documents. In those court filings, the California District Attorneys say that Overstock.com has admitted that it "knowingly" used false comparison prices on its website, a practice that deceives customers into thinking they are getting better prices than they actually did. Further, those documents reveal that the company is continuing to stonewall compliance with a court order compelling it to turnover contact information of former employees with potential knowledge of alleged wrongdoing.

Background

On November 17, 2010, District Attorneys from seven California counties sued Overstock.com alleging that it engaged in fraudulent advertising practices after a two year investigation. The District Attorneys are seeking at least $15 million of restitution, fines, penalties, an…