LITTLE ROCK, Ark., Aug. 24, 2004 (PRIMEZONE) -- The law firm of Emerson Poynter LLP announced today that a class action has been filed in the United States District Court for the Southern District of Florida on behalf of purchasers of PetMed Express, Inc. ("PetMed" or the "Company") (Nasdaq:PETS) securities during the period between June 18, 2003 and July 26, 2004, inclusive (the "Class Period"). A copy of the complaint filed in this action is available from the Court, or may be obtained by contacting Emerson Poynter.
The complaint charges PetMed and its CEO Menderes Akdag ("Akdag"), President/Chairman Marc Puleo ("Puleo"), and CFO Bruce S. Rosenbloom ("Rosenbloom"), with issuing false and misleading statements concerning PetMed's business and financial condition in violation of Sections 10(b) and 20(a) of the Securities Exchange Act, and Rule 10b-5 promulgated thereunder.
PetMed operates from a 32,000-square-foot warehouse in Pompano Beach, Florida, from where it sells pet medicines for home delivery through the Internet and toll-free telephone numbers. The Company has consistently promoted itself as an affordable source of everyday brand-name pharmaceutical and non-pharmaceutical products to treat dogs and cats afflicted with fleas, ticks and heartworm, among other ailments. But during the Class Period, the Complaint alleges that PetMed and its executives failed to disclose that PetMed was failing in its business and resorting to threatening practices aimed at veterinarians to force them to authorize the refill of PetMed prescriptions. Further, the Complaint charges that PetMed 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, which indeed prompted veterinarians to refuse refilling prescriptions through PetMed.
More disturbing though, and in support of the Complaint's alleged fraudulent scheme, the Company's executives are alleged to have sold $65 million of their personal holdings in PetMed stock while the stock was performing at artificially inflated levels due to the Defendants' concealment of material information from the investing public.
If you bought PetMed securities between June 18, 2003 and July 26, 2004, inclusive, and you wish to serve as Lead Plaintiff, you must move the Court for such an appointment no later than October 18, 2004. If you are a member of this Class, please contact Emerson Poynter for more information about the case, to join in support of the class action, or to possibly move for the appointment as Lead Plaintiff. Any member of the purported Class may move the Court to serve as Lead Plaintiff through Emerson Poynter, or any other counsel of their choice.
Emerson Poynter has substantial experience representing investors in securities fraud class action lawsuits such as this, and employees and former employees in recovering losses in their Company retirement plans. The Firm has offices in Houston, Texas, Little Rock, Arkansas, and Seattle, Washington, but represents investors and employees throughout the nation.
Purchasers of PetMed securities and employees or former employees concerned about their 401k retirement plan are encouraged to contact Emerson Poynter if they have any questions about how to recover their losses, or would like to serve as a Lead Plaintiff. Please call toll-free or email the firm:
Emerson Poynter LLP Investor Relations Department Ms. Tanya Autry (800) 663-9817 info@emersonpoynter.com
More information on this and other class actions can be found on the Class Action Newsline at http://www.primezone.com/ca