US: Central European Distribution Corp facing lawsuit
Central European Distribution Corp is facing a lawsuit in the US over the extent of its disclosures on performance in Eastern Europe, but the group is set to strongly deny allegations of wrongdoing.
Law firm Bernard M Gross said that it has filed the class action lawsuit in the US District Court in New Jersey. It has accused the drinks company of breaching the 1934 Securities and Exchange Act in the US.
It said that, between 5 August 2010 and 28 February 2011, Central European Distribution Corp (CEDC) failed to disclose double-digit declines in its vodka business in Poland. In addition, the law firm said, CEDC did not give enough guidance on the effect of a delay in gaining a new excise stamp in Russia.
When contacted by just-drinks, a spokesperson for CEDC said today (26 October): "CEDC has not yet been served with the complaint and it is thus unable to comment other than to state that it believes that any claim alleging a violation of US securities laws is completely meritless, and will be vigorously contested."
Central European Distribution Corporation has extended its distribution partnership with Gallo Vineyards in Poland....
Worsening full-year losses have convinced Central European Distribution Corp that it cannot pay short-term debt from its current resources, but it is still mulling strategic options....
Marblehead Brand Development is looking to develop its own Polish flavoured-vodka range, once it loses the UK distribution rights for Zubrowka to William Grant & Sons' First Drinks division....
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