HARTFORD, Conn., Jan. 28, 2008 (PRIME NEWSWIRE) -- The law firm of Schatz Nobel Izard P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Eastern District of Missouri on behalf of all persons who purchased the common stock of Panera Bread Co. ("Panera" or the "Company") (Nasdaq:PNRA) between November 1, 2005 and July 26, 2006, inclusive (the "Class Period").
The Complaint alleges that Panera and certain of the Company's officers and directors violated federal securities laws by issuing a series of materially false and misleading statements. Specifically, throughout the Class Period, the Company highlighted its increasing system-wide sales and, as a result, continuously increased its earnings guidance. Moreover, the Company was rapidly opening new locations throughout the United States. Unbeknownst to investors, Panera's aggressive growth strategy was causing the Company to experience declining sales at its existing stores. Additionally, the Complaint alleges that, defendants failed to disclose the following: (i) that Panera was experiencing negative trends in its business which were causing it to experience rising expenses and slow growth; (ii) that the Company's store expansion strategy was causing Panera to yield a lower return on capital and experience a decline in sales per restaurant as the 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 the Company, its prospects and revenue growth rate.
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.
If you are a member of the class, you may, no later than March 25, 2008, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz Nobel Izard P.C. has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz Nobel Izard P.C. toll-free at (800) 797-5499, or by e-mail at firm@snilaw.com, or visit our website: www.snilaw.com.