Judge gives final approval to Panera class action settlement

A federal judge today gave final approval to a $5.75 million settlement in a securities class action against St. Louis-based Panera Bread Co.

U.S. District Judge E. Richard Webber, of the Eastern District of St. Louis, signed off on the settlement after a fairness hearing this morning.

The lawsuit was filed in 2008 and alleged Panera and four executives weren’t open about the company’s growth strategy and “Crispani,” a flatbread pizza product that flopped.

The settlement defines the class as those who bought Panera common stock from Nov. 1, 2005, through July 26, 2007, excluding individuals or entities connected with the defendants. Notices were sent to about 90,000 potential class members, and if all of them submit valid claims, they can expect to receive about 13 cents per share.

The judge also awarded $1,725,000 in attorney fees, or 30 percent of the settlement, and $300,000 in costs. The lead lawyers are from Robbins Geller Rudman & Dowd’s San Diego and San Francisco offices.

In March 2010, Webber dismissed most of the plaintiffs’ claims because the statements they were suing over were either forward-looking or provided sufficient notice of risk. He allowed the plaintiffs to continue to pursue their claims on three Crispani-related statements and one statement about the average cost of opening a new store in 2005 and 2006.

Panera reported $1.5 billion in revenue for 2010.

The case is Western Washington Laborers-Employers Pension Trust v. Panera Bread Co. et al., 4;08-cv-120.