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Robbins LLP Reminds Petco Health and Wellness Company, Inc. Investors with Large Losses to Contact the Firm for Information About the WOOF Class Action Lawsuit
GlobeNewswire News Room· 2025-07-07 20:59
Core Viewpoint - A class action lawsuit has been filed against Petco Health and Wellness Company, Inc. for allegedly misleading investors about its business prospects during the pandemic [1][2]. Allegations - The lawsuit claims that Petco's pandemic-related growth was not sustainable and that its business model, which focuses on premium pet food, was overstated [2]. - It is alleged that the company downplayed the severity of issues affecting its business and the necessary changes to address these issues, which negatively impacted its sales metrics [2]. - The complaint states that Petco overstated its ability to achieve sustainable and profitable growth, leading to a decline in stock price when the truth was revealed [2]. Class Action Participation - Investors may be eligible to participate in the class action against Petco and can contact Robbins LLP if they wish to serve as lead plaintiffs [3]. - Shareholders can choose to remain absent from the case while still being eligible for recovery [3]. Company Background - Robbins LLP is a law firm specializing in shareholder rights litigation, dedicated to helping shareholders recover losses and improve corporate governance since 2002 [4].
Pomerantz Law Firm Announces the Filing of a Class Action Against Petco Health and Wellness Company, Inc. and Certain Officers - WOOF
Prnewswire· 2025-07-07 17:58
Core Viewpoint - A class action lawsuit has been filed against Petco Health and Wellness Company, Inc. for alleged violations of federal securities laws during the Class Period from January 14, 2021, to June 5, 2025, claiming damages for misleading statements regarding the company's business and financial performance [1][7]. Company Overview - Petco is a specialty retailer offering a variety of pet products and services, including consumable and non-consumable products, in-store veterinary, and grooming services [3]. - The company emphasizes comparable sales as a key business metric, measuring period-over-period net sales changes from physical and digital locations [3]. Financial Performance and Misrepresentation - Petco claimed to benefit from pandemic-related tailwinds, citing increased pet adoption rates and a transformation into a health-focused pet company, capitalizing on trends of "pet humanization" and "premiumization" [4]. - However, as these pandemic-related benefits waned, Petco's sales and profitability began to decline significantly, with notable financial performance deterioration starting in mid-2023 [5]. - Despite worsening financial conditions, Petco's management continued to assert the viability of its business model centered on premium pet products, issuing optimistic financial guidance for FY 2023 [6]. Class Action Allegations - The lawsuit alleges that Petco's executives made materially false and misleading statements about the sustainability of its business model and the strength of its product strategy, downplaying the severity of issues affecting the company [7]. - Specific allegations include the unsustainability of pandemic-related growth, overstated product strategy strength, and failure to disclose the true scope of financial challenges [7]. Stock Price Impact - Following a negative revision of FY 2023 financial guidance on August 24, 2023, Petco's stock price fell by $1.35 per share, or 20.64%, closing at $5.19 [9]. - A further revision on November 29, 2023, led to a stock price drop of $1.11 per share, or 28.91%, closing at $2.73 [11]. - After disclosing a GAAP net loss of $1.3 billion and acknowledging the unsustainability of its premium product focus on March 12, 2024, Petco's stock fell by $0.50 per share, or 19.53%, to $2.06 [12][13]. Recent Developments - On June 5, 2025, Petco reported a 1.3% year-over-year decline in comparable sales, which was worse than Wall Street's expectations, resulting in a stock price drop of $0.84 per share, or 23.2%, to $2.78 [16][17].
Petco Health and Wellness Company, Inc. Class Action Notice: Robbins LLP Reminds WOOF Investor of the Lead Plaintiff Deadline in the WOOF Class Action Lawsuit
GlobeNewswire News Room· 2025-07-03 23:40
Core Viewpoint - A class action lawsuit has been filed against Petco Health and Wellness Company, Inc. for allegedly misleading investors about its business prospects during the pandemic [1][2]. Group 1: Allegations - The lawsuit claims that Petco's pandemic-related growth was unsustainable and that its business model focused on premium pet food was overstated [2]. - It is alleged that the company downplayed the severity of issues affecting its business and the necessary changes to address these issues [2]. - The complaint states that Petco overstated its ability to achieve sustainable and profitable growth, leading to a decline in stock price when the truth was revealed [2]. Group 2: Class Action Participation - Investors who purchased Petco securities between January 14, 2021, and June 5, 2025, may be eligible to participate in the class action [1][3]. - Shareholders interested in serving as lead plaintiffs can contact the firm, but participation is not required to be eligible for recovery [3]. Group 3: Legal Representation - Robbins LLP operates on a contingency fee basis, meaning shareholders incur no fees or expenses unless the case is successful [4].