NEW YORK, Aug. 25, 2004 (PRIMEZONE) -- Wechsler Harwood LLP today announced that it has filed a Federal Securities fraud class action suit on behalf of all securities purchasers of PetMed Express, Inc. (Nasdaq:PETS) ("PetMed" or the "Company") from June 18, 2003 through July 26, 2004, inclusive (the "Class Period").
The action, entitled Malonek v. PetMed Express, Inc., et al., Case No.04-CV-80784, is pending in the United States District Court for the Southern District of Florida and names as defendants, the Company, its Chief Executive Officer and a Director, Menderes Akdag, its President and Chairman of the Board of Directors, Marc Puleo, and its Chief Financial Officer, Bruce S. Rosenbloom. A copy of the complaint can be obtained from the Court or can be viewed on the Wechsler Harwood web site at: www.whesq.com.
The complaint charges defendants with violations of the Securities Exchange Act of 1934. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company's business model enabled the company to experience sustained financial growth since the model shifted costs to veterinarians (who are the Company's competitors); (2) that the business model made the Company dependent on the cooperation of veterinarians to fill prescriptions; (3) that the defendants could not guarantee the quality, safety or efficacy of PetMed drugs because, as an unauthorized reseller of many products, the Company had to obtain such products through unauthorized channels, prompting veterinarians to refuse refilling prescriptions through PetMed; and (4) that as a result, the Company's financial results were not sustainable, causing the stock to trade at artificially high prices. During the Class Period, while PetMed's stock price was inflated, defendants and Company insiders sold almost $65 million in privately held PetMed's stock.
On July 26, 2004, defendants shocked the market when they belatedly disclosed that the Company was operating well below defendants' previous guidance and that PetMed revenues and earnings were well below plan. News of this shocked the market. Shares of PetMed fell $2.07 per share or 29.70 percent, on July 26, 2004, to close at $4.90 per share.
If you are a member of the class described above, you may, not later than October 18, 2004, move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Wechsler Harwood, or other counsel of your choice, to serve as your counsel in this action.
Wechsler Harwood has taken a leading role in many important actions on behalf of defrauded shareholders. The Wechsler Harwood website (www.whesq.com) has more information about the firm and detailed information regarding this matter. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following:
Wechsler Harwood LLP 488 Madison Avenue, 8th Floor New York, New York 10022 Toll Free Telephone: (877) 935-7400 Virgilio Soler, Wechsler Harwood Shareholder Relations Department: vsoler@whesq.com
More information on this and other class actions can be found on the Class Action Newsline at http://www.primezone.com/ca