Panera Bread Company (NASDAQ: PNRA) Investor Securities Class Action Lawsuit 1/25/2008

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Company Name(s): 
Panera Bread
Case Name: 
Panera Bread Shareholder Class Action Lawsuit 1/25/2008
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Approved
Affected Securities
NASDAQ: PNRA
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
01/25/2008
Class Period Begin: 
11/01/2005
Class Period End: 
07/26/2007
Court of Filing: 
U.S. District Court for the Eastern District of Missouri
Deadline To File for Lead: 
03/25/2008
Date Settled: 
06/22/2011
Settlement Amount: 
$5,750,000
Deadline to Participate in Settlement: 
07/22/2011
Summary: 

June 22, 2011 - The court approved the settlement, entered the orders approving the plan of allocation and awarded attorneys' fees and expenses.

February 22, 2011 - The court preliminarily approved the settlement.

February 11, 2011 - Parties filed a stipulation of settlement.

June 25, 2009 - The court denied the defendants' motion to dismiss without prejudice.

October 6, 2008 - Defendants filed a motion to dismiss.

August 7, 2008 - The lead plaintiff filed an amended consolidated complaint..

June 23, 2008 - Lead plaintiff and lead counsel were appointed and all cases were consolidated.

March 25, 2008 - Lead plaintiff motion was filed.

February 26, 2008 - Another investor filed a complaint.

January 25, 2008 - An investor in shares of Panera Bread Company (NASDAQ: PNRA) filed a lawsuit in the U.S. District for the Eastern District of Missouri against Panera Bread Company over alleged violations of Federal Securities Laws.

According to the complaint the plaintiff charges Panera Bread Company and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The complaint alleges that between November 1, 2005 and July 26, 2006 defendant issued materially false and misleading statements regarding Panera Bread Company's business and financial results.

The complaint alleges that between November 1, 2005 and July 26, 2006, Panera Bread Company highlighted its increasing system-wide sales and, as a result, continuously increased its earnings guidance. Moreover, Panera Bread Company was rapidly opening new locations throughout the United States. Unbeknownst to shareholders, Panera Bread Company’s aggressive growth strategy was causing Panera Bread Company to experience declining sales at its existing stores.

Additionally, the complaint alleges that, between November 1, 2005 and July 26, 2006, defendants issued materially false and misleading statements and failed to disclose (i) that Panera Bread Company was experiencing negative trends in its business which were causing it to experience rising expenses and slow growth; (ii) that Panera Bread Company’s store expansion strategy was causing Panera Bread Company to yield a lower return on capital and experience a decline in sales per restaurant as Panera Bread Company’s new store openings began to cannibalize sales from existing stores; and (iii) as a result of the foregoing, defendants lacked a reasonable basis for their positive statements about Panera Bread Company, its prospects and revenue growth rate.

On July, 26, 2006, Panera Bread Company announced its financial results for the second quarter of 2006, the period ended June 27, 2006. In response to this announcement, the price of Panera Bread Company (NASDAQ: PNRA) common stock fell $7.34 per share, or approximately 12%, to close at $51.93 per share, on extremely heavy trading volume.

Panera Bread Company engages in the ownership and franchising of bakery-cafes in the United States under the Panera Bread Company and Saint Louis Bread Company names.