A Medical Device Daily

Patterson Companies (St. Paul, Minnesota) reported that the U.S. District Court, District of Minnesota, has dismissed, with prejudice, litigation brought against it and certain officers and directors under federal securities law and ERISA.

It said the court also dismissed, without prejudice, a shareholder's derivative action against it and certain of its officers and directors. The litigation was filed in August 2005.

The complaint alleged that Patterson and certain officers and directors violated federal securities laws by issuing misleading public statements. Specifically, it said that defendants knew by February 2005 that the company's 4Q05 and fiscal 2005 sales, operating profit, operating profit margin, net income and gross margin would actually decline materially and that based on business conditions then known to the defendants, Patterson's quarterly and full-year earnings per share targets were impossible to meet (Medical Device Daily, Aug. 11, 2005).

The complaint also said that while Patterson's shares were "artificially inflated" the company's top officers and directors sold more than $44 million worth of their own shares.

Patterson is a distributor serving the dental, rehabilitation supply and veterinary markets.