SOURCE: Law Offices of Marc S. Henzel

August 12, 2005 13:45 ET

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

BALA CYNWYD, PA -- (MARKET WIRE) -- August 12, 2005 -- 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 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.

If you are a member of the class described above, you may, not later than October 9, 2005 move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff.

If you have any questions concerning this case or your rights or interests with respect to these and other matters in this notice, please contact: Marc S. Henzel, Esq. of The Law Offices of Marc S. Henzel, 273 Montgomery Ave, Suite 202 Bala Cynwyd, PA 19004-2808, by telephone (888) 643-6735 or (610) 660-8000, by facsimile (610) 660-8080, by e-mail at or visit the firm's website at

Contact Information