Patterson Dental: Lied About Earnings Statements?

Market Wire has Law Offices of Marc S. Henzel Announces Class Action Lawsuit Against Patterson Companies, Inc.

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. (NASDAQ: PDCO) publicly traded securities during the period between February 24, 2005 and May 25, 2005, inclusive (the “Class Period”).

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.

Flap wonders if the hype about the Cerec 3D lately has something to do with shoring up the bottom line for Patterson?

Isn’t business wonderful?

Update #1

There are other lawsuits or solicitation for class action:

Lerach Coughlin Stoia Geller Rudman & Robbins LLP Files Class Action Suit Against Patterson Companies, Inc.

Update #2

Here is the complaint and demand for jury trial.

Technorati Tags: Patterson, Patterson Company, Cerec, Cerec 3D, dentistry, dental, dentist