Petco Health and Wellness pany(US:WOOF) Prnewswireยท2025-07-24 20:06Core Viewpoint - Berger Montague is investigating potential securities fraud claims against Petco Health and Wellness Company, following a federal securities class action lawsuit related to misleading statements about its pandemic-driven growth and product strategy [1][2]. Summary by Relevant Sections Allegations of Misleading Statements - The complaint alleges that Petco made false and misleading statements regarding the sustainability of its pandemic-driven growth and premium product strategy, which led to a significant decline in its stock price, including a drop of over 20% on August 24, 2023 [2]. Impact on Stock Price and Investor Confidence - The lawsuit indicates that Petco's stock experienced substantial losses following financial disclosures and executive departures during the Class Period from January 14, 2021, to June 5, 2025 [2][3]. - The company's efforts to adjust its product mix by introducing lower-cost pet food options contradicted prior public statements, further undermining investor confidence [3]. Leadership Changes and Earnings Guidance - Multiple leadership changes and continued downward revisions to earnings guidance highlighted the severity of Petco's challenges, negatively impacting investor sentiment [3].