NEW YORK, Sept. 22, 2004 (PRIMEZONE) -- Frank & Sailer LLP announces a 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 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's 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.
Murray, Frank & Sailer LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States.
If you purchased or acquired the common stock of PetMed between June 18, 2003 through July 26, 2004, inclusive, and sustained damages, you may, no later than October 18, 2004, move the Court to serve as lead plaintiff of the class. Shareholders outside the United States may also join the action, regardless of where they live or which exchange was used to purchase the securities. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this class action online at http://www.murrayfrank.com/CM/NewCases/NewCases.asp. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff's counsel Eric J. Belfi or Aaron D. Patton of Murray, Frank & Sailer LLP.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca