NEW YORK, June 10, 2005 (PRIMEZONE) -- Pomerantz Haudek Block Grossman & Gross LLP (www.pomerantzlaw.com) reminds investors that June 17, 2005 is the deadline to seek appointment by the Court as lead plaintiff in the class action lawsuit against PETCO Animal Supplies, Inc. ("PETCO" or the "Company") (Nasdaq:PETCE). A lawsuit was filed against the company and three of the 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.
A lead plaintiff acts on behalf of other class members in overseeing and directing the litigation. The Court must determine that the claim of the lead plaintiff is typical of the claims of other class members and that the lead plaintiff will adequately represent 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. If you wish to review a copy of the complaint, to discuss this action, or have any questions, please contact the Pomerantz Firm. Those who inquire by email are encouraged to include their mailing address and phone number.
The complaint alleges that 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.
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.
More information on this and other class actions can be found on theClass Action Newsline at www.primezone.com/ca