Panera Bread Hit with Securities Violation Suit
Lawsuit Seeks Class Action Status for Investors ST. LOUIS (Blue MauMau) - In a lawsuit filed last Friday in U.S. District Court, Eastern District of Missouri, attorneys allege that Panera Bread Company and certain officials and directors violated the Securities Exchange Act of 1934. The case is seeking class action status for all persons who purchased the common stock between November 1, 2005 and July 26, 2006. During this "class period," Panera Bread, through its aggressive growth expansion, allegedly highlighted its increasing system-wide sales, which continuously increased its earnings guidance. Investors claim they did not realize that the company's growth was causing Panera to experience declining sales at its existing restaurants. 
According to press releases, on July 26, 2006, Panera announced its financial results for the second quarter of 2006, the period ended June 27, 2006. On this news, the price of Panera common stock fell $7.34 per share, or approximately 12%, to close at $51.93 per share.
The law firm of Coughlin Stoia Geller Rudman Robbins in New York filed the first lawsuit on January 25 (see attachment), which will be the operative case with its investors as lead plaintiffs. Other Investors have 60 days from the file date to submit their complaints if they wish to join. Other lawsuits filed will be consolidated into the one case.
Panera Bread, founded in 1981, operates or franchises over 1160 bakery-cafes in 40 states. System wide sales in 2006 were projected to exceed $1.9 billion.
Telephones calls to Coughlin Stoia law firm were not returned prior to publishing. An email to Panera Bread's press office seeking comment has not been answered.
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| Attachment | Size |
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| ClassActionCourtFilingAgainstPaneraBread.pdf | 266.32 KB |
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