1. Petco faces a federal class action alleging misleading financial statements. 2. The company's pandemic-related growth model is described as unsustainable. 3. Petco reported a 2.3% decline in year-over-year net sales. 4. Following financial news, Petco's stock fell 23.34% to $2.78. 5. Investors have until August 29, 2025, to join the class action.
The significant drop in stock price following negative news indicates loss of investor confidence. Historical cases of class actions often lead to continued price declines until resolved.
The article discusses legal issues directly affecting Petco's financial stability, crucial for investors. A significant ongoing lawsuit and its implications can sway investor decisions.
Immediate market reactions to lawsuits often cause swift price impacts. Similar past lawsuits, like those faced by other companies, resulted in short-term volatility.
NEW YORK--(BUSINESS WIRE)-- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Petco Health and Wellness Company, Inc. (“Petco” or the “Company”) (NASDAQ: WOOF) and reminds investors of the August 29, 2025 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.
As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) Petco’s pandemic-related tailwinds were unsustainable, as was its business model of selling primarily premium and/or high-grade pet food; (2) accordingly, the strength of Petco’s differentiated product strategy was overstated; (3) Defendants downplayed the true scope and severity of the foregoing issues, the magnitude of changes needed to rectify those issues, and the likely negative impacts of their mitigation strategy on Petco’s comparable sales metric; (4) accordingly, Defendants overstated Petco’s ability to deliver sustainable, profitable growth; and (5) as a result, Defendants’ public statements were materially false and misleading at all relevant times.
On June 5, 2025, Petco issued a press release reporting its financial results for the first quarter of 2025. Among other items, Petco reported net sales of $1.5 billion, representing a 2.3% year-over-year decline.
On this news, Petco’s stock price fell $0.85 per share, or 23.34%, to close at $2.78 per share on June 6, 2025.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Petco’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
To learn more about the Petco class action, go to www.faruqilaw.com/WOOF or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
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