The Pomerantz Firm Files Securities Class Action Suit against PETCO Animal Supplies, Inc. -- PETC

14 May 2005

Company's senior officers, on behalf of all persons or entities who purchased the securities of PETCO from November 18, 2004 to April 14, 2005 (the "class period"). The case was filed in the United States District Court, Southern District of California. The lawsuit is seeking to pursue remedies under the Securities Exchange Act of 1934.

PETCO is a San Diego-based company that owns and operates a chain of retail pet food and supply stores in the United States and the District of Columbia. During the class period, defendants reported strong earnings and sales growth and represented that such growth would continue in 2005. In fact, unbeknownst to investors, PETCO's fourth quarter earnings were materially artificially inflated through accounting manipulation. In particular, PETCO had been under-accruing expenses, thereby inflating its earnings. For the same reason, the Company's favorable projections for 2005 were lacking in any reasonable basis and were premised on the continuation of the improper accounting practices.

The complaint further alleges that PETCO and the Company's Chief Executive Officer, James M. Myers, the Company's Chief Financial Officer, Rodney Carter and PETCO's Chairman of the Board, Brian K. Devine, were privy to confidential and proprietary information concerning the Company, its operations, finances, financial condition, and present and future business prospects. Because of their possession of such information, the defendants had a duty to disseminate promptly accurate and truthful information with respect to PETCO's financial condition and performance, growth, operations, financial statements, business, products, markets, management, earnings and present and future business prospects, and to correct any previously issued statements that had become materially misleading or untrue, so that the market price of PETCO's common stock would be based upon truthful and accurate information.

If you purchased the securities of PETCO Animal Supplies, Inc. during the Class Period, you have until June 17, 2005 to ask the Court to appoint you as one of the lead plaintiffs for the Class. In order to serve as lead plaintiff, you must meet certain legal requirements. Shareholders outside the United States may also join the action, regardless of where they live or which exchange was used to purchase the securities. If you wish to review a copy of the Complaint, to discuss this action, or have any questions, please contact Teresa Webb (tlwebb@pomlaw.com) or Carolyn Moskowitz (csmoskowitz@pomlaw.com) of the Pomerantz Firm at 888.476.6529 (or 888.4.Pomlaw), toll free. Those who inquire by email are encouraged to include their mailing address and phone number.

The Pomerantz Firm, which has offices in New York, Chicago and Washington, D.C., is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 50 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion dollar damages awards on behalf of class members.

Source: PrimeZone

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