LOS ANGELES, May 12, 2005 (PRIMEZONE) -- Notice is hereby given by Glancy Binkow & Goldberg LLP that a Class Action lawsuit was filed in the United States District Court for the Southern District of California on behalf of a class (the "Class") consisting of all persons or entities who purchased or otherwise acquired securities of PETCO Animal Supplies Inc. ("PETCO" or the "Company") (Nasdaq:PETC) during the period November 18, 2004 through April 14, 2005, inclusive (the "Class Period"). A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or obtain a copy of the Complaint at (310) 201-9150 or Toll Free at (888) 773-9224, by email at info@glancylaw.com, or visit our website at www.glancylaw.com.
The Complaint charges PETCO and certain of the Company's executive officers with violations of federal securities laws. PETCO is a San Diego, California-based company that owns and operates more than 650 pet stores in 43 states. Plaintiff claims defendants' omissions and material misrepresentations artificially inflated the Company's stock price, inflicting damages on investors. The Complaint alleges that during the Class Period, defendants reported strong earnings and sales growth and represented that such growth would continue in 2005. But unbeknownst to investors, PETCO's fourth quarter 2004 earnings were materially artificially inflated through accounting manipulation. Specifically, 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. On April 15, 2005, before the open of regular trading, PETCO issued a press release announcing that it will delay filing its 2004 Form 10-K with the SEC, due to accounting errors related to under-accrual of expenses. Based on its review, PETCO will need to adjust downward, possibly in a restatement, its reported fourth quarter 2004 earnings by $0.05 to $0.07 per share. PETCO's expected 2005 earnings will be reduced by the same amount, according to the Company.
In response to the announcement that the Company had inflated its earnings through accounting manipulation, PETCO's stock price dropped by 13.6% in one day - from $35.14 per share on April 14, 2005, to a closing price of $30.36 on April 15, 2005, in unusually heavy trading.
Plaintiff seeks to recover damages on behalf of Class members and is represented by Glancy Binkow & Goldberg LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.
If you are a member of the Class described above, you may move the Court, not later than June 17, 2005, to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9150, toll-free at (888) 773-9224, or by e-mail to info@glancylaw.com.