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Patterson Companies, Inc.

36 days left to seek lead plaintiff status

Case Summary

Company Name
Patterson Companies, Inc.
Stock Symbol
PDCO
Class Period
June 26, 2015 to February 28, 2018
Motion Deadline
May 27, 2018
Court
District of Minnesota

The complaint charges Patterson and certain of its officers with violations of the Securities Exchange Act of 1934.  Patterson is one of the nation's only full-service distributors of dental products.  The Company distributes its products mainly through two subsidiaries – Patterson Dental and Patterson Animal Health.

The complaint alleges that throughout the Class Period, defendants made false and misleading statements and/or failed to disclose material adverse facts about the Company's business, operations and prospects.  Specifically, the complaint alleges that defendants were engaged in a fraudulent and illegal price-fixing conspiracy that was aimed at prohibiting sales to and price negotiations by group purchasing organizations ("GPOs"), which represented small and independent dental practices, and that as a consequence of the scheme, the Company's revenues and earnings were fraudulently inflated.  As a result of defendants’ false statements and/or omissions, the price of Patterson common stock was artificially inflated, reaching a high of over $50 per share during the Class Period. 

On February 12, 2018, the Federal Trade Commission (“FTC”) announced that it had filed a complaint against Patterson, Henry Schein, Inc. (“Henry Schein”) and Benco Dental Supply Company (“Benco”) alleging that the three dental supply companies had engaged in unethical, anti-competitive behavior in violation of federal antitrust laws.  Specifically, the FTC alleged that Patterson, Henry Schein and Benco – the nation’s three largest dental supply companies who collectively control more than 85% of all distributor sales of dental products and services nationwide – illegally conspired to refuse to provide discounts to or otherwise negotiate with GPOs.  On this news, the price of Patterson shares declined, falling to a close of $31.21 per share on February 13, 2018.

Then, on March 1, 2018, less than three weeks after the FTC announced the filing of its complaint, Patterson revealed that it had significantly missed consensus earnings expectations for the third quarter of fiscal year 2018 and that its CFO would be stepping down.  On this news, Patterson shares fell another 23% to close at $24.11 per share.

Class Period: June 26, 2015 - February 28, 2018
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