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Shareholder class action filed against Panera Bread
February 27, 2008
RADNOR, Pa. — A class-action lawsuit was filed in the U.S. District Court for the Eastern District of Missouri, St. Louis Division, on behalf of all purchasers of securities of Panera Bread Co. between Nov. 1, 2005, and July 26, 2006, inclusive. The filing was announced by the law firm of Schiffrin Barroway Topaz & Kessler LLP.
The complaint charges Panera and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The complaint alleges that, throughout the class period, defendants failed to disclose material adverse facts about the company's financial well-being, business relationships and prospects. Specifically, it alleges that defendants failed to disclose or indicate the following:
- The company was experiencing fierce competition from similar dining establishments, such that the company would not be able to maintain growth and earnings trends and projections.
- The company's strategy of rapidly expanding locations was causing a decline in sales per restaurant and a lower return on capital because business was being drawn away from existing stores.
- The company's business was trending negatively because of both slow growth and rising expenses.
- As a result of the foregoing, the company's statements about its financial well-being and future business prospects were lacking in any reasonable basis when made.
The plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin Barroway Topaz & Kessler, which prosecutes class actions in both state and federal courts throughout the country.
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