Oct. 26 (Bloomberg) -- Green Mountain Coffee Roasters Inc., maker of the single-serve Keurig brewing machine, fell to the lowest in seven months after hedge fund managing director Whitney Tilson told CNBC there may be potential for accounting fraud at the company.
Green Mountain slid 4.9 percent to $61.59 at the close in New York, the lowest since March 21. The shares have lost 33 percent since Oct. 14, the trading day before Greenlight Capital Inc. President David Einhorn said the company has a “litany of accounting questions” and needs to improve its transparency.
The U.S. Securities and Exchange Commission may find something in its investigation of Green Mountain, Tilson, the co-founder of hedge fund T2 Partners LLP in New York, said during an interview on CNBC today.
“We think that they are going to find something,” he told CNBC.
Tilson said he was shorting Green Mountain stock at the Value Investing Congress in New York on Oct. 17.
Last year, Green Mountain restated earnings for fiscal years back to 2007 because of incorrect costs for K-Cup coffee pods and changes to the how it recognizes K-Cup royalties, according to a company statement. The Waterbury, Vermont-based company said in an August filing that it is continuing to cooperate with the SEC in its investigation.
Suzanne DuLong, a company spokeswoman, didn’t return a phone message and e-mail seeking comment about Tilson’s remarks.
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