Panera Bread 2012 Annual Report Download - page 25

17
ITEM 3. LEGAL PROCEEDINGS
On December 9, 2009, a purported class action lawsuit was filed against us and one of our subsidiaries by Nick Sotoudeh, a former
employee of a subsidiary of Panera Bread Company. The lawsuit was filed in the California Superior Court, County of Contra
Costa. On April 22, 2011, the complaint was amended to add another former employee, Gabriela Brizuela, as a plaintiff. The
complaint alleged, among other things, violations of the California Labor Code, failure to pay overtime, failure to provide meal
and rest periods and termination compensation and violations of California’s Business and Professions Code. The complaint sought,
among other relief, class certification of the lawsuit, unspecified damages, costs and expenses, including attorneys’ fees, and such
other relief as the Court determines to be appropriate. On November 17, 2011, the parties entered into a Memorandum of Agreement
regarding settlement of this purported class action lawsuit and the purported class action lawsuit filed by David Carter, which is
described in the subsequent paragraph. Under the terms of the Memorandum of Agreement, the parties agreed to settle this matter
for a maximum aggregate amount of $5.0 million for settlement payments to purported class members, plaintiffs' attorneys' fees,
and costs of administering the settlement. The Memorandum of Agreement contains no admission of wrongdoing. The terms and
conditions of the settlement were preliminarily approved by the Court on June 8, 2012. At a hearing on December 21, 2012, the
Court approved the terms and conditions of the settlement and the actual settlement payment amounts, except for plaintiffs'
attorneys' fees and costs, which were approved by the Court at a separate hearing on February 5, 2013. Based upon the Court
approved settlement amounts and the amount of attorneys' fees and costs sought by plaintiffs' counsel, we maintained a reserve
of $3.7 million in accrued expenses in our Consolidated Balance Sheets as of December 25, 2012.
On July 22, 2011, a purported class action lawsuit was filed against us and one of our subsidiaries by David Carter, a former
employee of a subsidiary of Panera Bread Company, and Nikole Benavides, a purported former employee of one of our franchisees.
The lawsuit was filed in the California Superior Court, County of San Bernardino. The complaint alleges, among other things,
violations of the California Labor Code, failure to pay overtime, failure to provide meal and rest periods and termination
compensation and violations of California's Business and Professions Code. The complaint sought, among other relief, collective
and class certification of the lawsuit, unspecified damages, costs and expenses, including attorneys' fees, and such other relief as
the Court determines to be appropriate. This matter against our subsidiary was consolidated with the lawsuit described in the
immediately preceding paragraph and is the subject of the Memorandum of Agreement described above.
On December 16, 2010, a purported class action lawsuit was filed against us and one of our subsidiaries by Denarius Lewis, Caroll
Ruiz, and Corey Weiner, former employees of a subsidiary of Panera Bread Company. The lawsuit was filed in the United States
District Court for Middle District of Florida. The complaint alleged, among other things, violations of the Fair Labor Standards
Act. The complaint sought, among other relief, collective, and class certification of the lawsuit, unspecified damages, costs and
expenses, including attorneys’ fees and such other relief as the Court determines to be appropriate. On February 29, 2012, the
parties agreed to settle this matter for an amount up to an aggregate of $1.5 million for settlement payments to purported class
members, plaintiffs' attorneys' fees, and costs of administering the settlement. The agreement includes no admission of wrongdoing.
The terms and conditions of the settlement were approved by the Court on June 26, 2012, and the matter was dismissed with
prejudice. The settlement amount of $1.5 million was paid into a settlement fund on July 6, 2012.
In addition, we are subject to other routine legal proceedings, claims, and litigation in the ordinary course of our business. Defending
lawsuits requires significant management attention and financial resources and the outcome of any litigation, including the matters
described above, is inherently uncertain. We do not believe the ultimate resolution of these actions will have a material adverse
effect on our consolidated financial statements. However, a significant increase in the number of these claims, or one or more
successful claims under which we incur greater liabilities than is currently anticipated, could materially and adversely affect our
consolidated financial statements.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.