Shareholder Class Action Filed Against Panera Bread Co.
February 27th, 2008 | 
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The following statement was issued today by the law firm of Schiffrin Barroway Topaz & Kessler, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Eastern District of Missouri, St. Louis Division, on behalf of all purchasers of securities of Panera Bread Co. (NASDAQ:PNRA) (“Panera” or the “Company”) between November 1, 2005 and July 26, 2006, inclusive (the “Class Period”).
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin Barroway Topaz & Kessler, LLP (Darren J. Check, Esq. or Richard A. Maniskas, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@sbtklaw.com.
The Complaint charges Panera and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Panera owns and franchises bakery-cafes under the Panera Bread and Saint Louis Bread Co. names.
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, defendants failed to disclose or indicate the following: (1) that 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, (2) that 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, (3) that the Company’s business was trending negatively because of both slow growth and rising expenses, and (4) that, 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.
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Posted in General News
Well, well… that sounds suspiciously a lot like the Meal Assembly business Franchisors doesn’t it?
perhaps, but this is a securities class action, so the villains are different.
A lot of the suits are starting to sound alike. Seems the franchisors have kept a lot of information back about how financially sound the business is. This is a different type of suit, but that doesn’t mean the allegations aren’t being shared across multiple businesses.
As stated before, I really hope the franchisors begin to take their part of the relationship seriously and deliver on the promises they made in order to sell the franchise. More lawsuits keep getting announced so we may be on the cusp of a very big change in the restaurant industry in general. Fast food and meal assembly may just be start of the litigation.