Patterson Companies, Inc.
On August 20, 2018, Plymouth County Retirement System, Pembroke Pines Fund for Firefighters and Police Officers and Central Laborers joined Gwinnett County Public Employees Retirement System in a Joint Stipulation and Proposed Order seeking appointment as co-lead plaintiffs.
Once the Court enters the Proposed Order, counsel will confer on a schedule for the filing of an amended complaint and Defendants’ anticipated motions to dismiss.
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 asserts claims for violations of the Securities Exchange Act of 1934. The Complaint alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects.
Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) Defendants’ were engaged in a fraudulent and illegal price-fixing conspiracy; (2) that the Company’s revenue and earnings were fraudulently inflated by the illegal scheme (3) the scheme was aimed at prohibiting sales to and price negotiations by GPOs that represented small and independent dental practices; (3) as a result of the foregoing, Defendants’ statements about Patterson’s business, operations, and prospects, were materially false and/or misleading and/or lacked a reasonable basis.
On August 6, 2018, the Court expressed an interest for competing lead plaintiff movants to work together as co-lead plaintiffs. As a result, on August 20, 2018, Plymouth County Retirement System, Pembroke Pines Fund for Firefighters and Police Officers and Central Laborers joined Gwinnett County Public Employees Retirement System in a Joint Stipulation and Proposed Order seeking appointment as co-lead plaintiffs. The Court granted the Proposed Order on August 30, 2018.
On November 9, 2018, Lead Plaintiffs filed their Amended Complaint, alleging that Defendants artificially inflated Patterson’s stock price by engaging in an illegal conspiracy with Patterson’s two main competitors, Benco Dental Supply Co. and Henry Schein, Inc., to fix supra-competitive prices for dental supplies through their collusive boycott of discount dental dealers in violation of federal antitrust laws. On January 18, 2019, Defendants filed their motion to dismiss the Amended Complaint. Lead Plaintiffs’ opposition to the motion is due on March 19, 2019, and Defendants’ reply is due on May 3, 2019.