ST. PAUL, Minn., Aug. 10, 2005 (PRIMEZONE) -- Reinhardt Wendorf & Blanchfield announces that a class action lawsuit was filed in the United States District Court for the District of Minnesota, on behalf of purchasers of Patterson Companies, Inc. ("Patterson" or "the Company") (Nasdaq:PDCO) publicly traded securities during the period between February 24, 2005 and May 25, 2005, inclusive (the "Class Period").
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from August 9, 2005. If you wish to discuss this case or have questions concerning this case or your rights or interests, please contact: Garrett D. Blanchfield of Reinhardt Wendorf & Blanchfield at 800-465-1592 or 651-287-2100, via facsimile at 651-287-2103 or via email at g.blanchfield@rwblawfirm.com. For more information about Reinhardt Wendorf & Blanchfield, visit our website at www.rwblawfirm.com.
The complaint charges Patterson and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Patterson distributes dental, companion-pet veterinary and rehabilitation supplies.
The complaint alleges that the Company's Q4 was historically its largest quarter in terms of both revenue and earnings, but that defendants knew by February 2005 that the Company's Q4 and FY 2005 sales, operating profit, operating profit margin, net income and gross margin would actually decline materially in Q4 2005 and that based on business conditions knowable and then known to the defendants, the Company's Q4 and FY 2005 EPS targets were impossible to meet. According to the complaint, defendants knew missing the Company's Q4 estimates would not only be detrimental to the Company's share price, sending the Company's shares into a freefall, but also evidence the Company's inability to successfully grow the Company through acquisitions.
The complaint further alleges that as a result of the defendants' false and misleading Class Period statements, Patterson's stock traded at inflated levels during the Class Period, increasing to its historical all-time high of $53.85 per share, allowing the Company's top officers and directors to sell more than $44 million worth of their own shares at inflated prices. The Company's true financial status, including its Q4 2005 declining gross sales, declining Dental Supply segment sales, declining Dental Supply operating profits, declining Dental Supply operating profit margin, declining net income and declining gross margin growth, was ultimately disclosed on May 26, 2005. On May 26, 2005, following defendants' revelations, the Company's share price plummeted 14%, erasing $1.1 billion in market capitalization as it fell below $46 per share on record volume of over 10 million shares traded.
Plaintiff seeks to recover damages on behalf of all purchasers of Patterson publicly traded securities during the Class Period. The plaintiff is represented by Reinhardt Wendorf & Blanchfield, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Reinhardt Wendorf & Blanchfield and its predecessor firm have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca