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Case Status:    SETTLED
On or around 09/02/2008 (Date of order of final judgment)

Filing Date: April 18, 2005

Several purported class action complaints have been filed charging PETCO and certain of its officers and directors with violations of the Securities Exchange Act of 1934. PETCO is a specialty retailer of premium pet food, supplies and services with 654 stores in 43 states and the District of Columbia.

Specifically, the complaint alleges that during the Class Period, defendants caused PETCO's shares to trade at artificially inflated levels through the issuance of false and misleading financial statements. On November 18, 2004, PETCO announced Q3 2004 results and raised its guidance for FY 2004. The Company subsequently issued very favorable results for FY 2004. As a result, by April 2005, the Company's stock was trading above $37 per share. Then, on April 15, 2005, before the market opened, the Company issued a press release entitled "PETCO to Delay Filing of Form 10-K." The release stated that PETCO would delay the filing of its Form 10-K with the Securities and Exchange Commission and that it had requested a 15-day extension after it discovered accounting errors related to certain under-accrued expenses in its distribution operations. The Company anticipated its Q4 2004 earnings would be reduced by $3.0-$4.5 million and expected that FY 2005 earnings would be reduced by a similar amount, as it took into consideration the nature of the under-accrual of expenses. The stock dropped 15% to close at $30.36 per share on these revelations of accounting improprieties.

On August 17, 2005, Judge Marilyn L. Huff consolidated the actions and further approved the Plumbers and Pipefitters Local 51 Pension Fund as lead plaintiff and Lerach Coughlin Stoia Geller Rudman & Robbins LLP as lead counsel. In October 2005, a consolidated complaint was filed extending the class period from August 18, 2004 to August 25, 2005, adding additional but similar causes of action, and naming additional defendants, including other senior Company officers, several former and current members of the Company’s Board of Directors, and two former stockholders. On August 1, 2006 the Court issued its order granting in part and denying in part defendants’ motion to dismiss. The Court dismissed (a) the claims against the former stockholders and certain officers and directors and (b) certain of plaintiffs’ alleged operational misrepresentation claims, but denied the motion to dismiss with respect to the alleged accounting misrepresentation claims made against the Company and certain directors and senior officers. Discovery soon commenced and the parties engaged in numerous settlement conferences. On February 25, 2008, certain defendants filed a motion for summary judgment which was later granted in part and denied in part according to an Order issued on April 29, 2008.

On June 30, 2008, a motion for preliminary approval of the settlement was filed. The proposed settlement was in the amount of $20,250,000 cash. On July 7, 2008, U.S. District Court Judge Marilyn L. Huff preliminarily approved the settlement and set the approval hearing for September 2, 2008. At the hearing, Judge Huff approved the class action settlement and plan of allocation of settlement proceeds and further granted lead plaintiff's counsel's motion for an award of attorney fees and expenses. Judgment was entered and the action has been dismissed with prejudice.

COMPANY INFORMATION:

Sector: Services
Industry: Retail (Specialty)
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: PETC
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: S.D. California
DOCKET #: 05-CV-00823
JUDGE: Hon. Marilyn L. Huff
DATE FILED: 04/18/2005
CLASS PERIOD START: 11/18/2004
CLASS PERIOD END: 04/14/2005
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Brodsky & Smith, LLC (former Pennysylvania)
    11 Bala Avenue, Suite 39, Brodsky & Smith, LLC (former Pennysylvania), PA 19004
    610.668.7987 610.660.0450 · esmith@Brodsky-Smith.com
  2. Dyer & Shuman, LLP
    801 E. 17th Avenue, Dyer & Shuman, LLP , CO 80218-1417
    303.861.3003 800.711.6483 · info@dyershuman.com
  3. Federman & Sherwood (Oklahoma City)
    120 North Robinson, Suite 2720, Federman & Sherwood (Oklahoma City), OK 73102
    405-235-1560 · wfederman@aol.com
  4. Glancy Binkow & Goldberg LLP (Los Angeles)
    1801 Ave. of the Stars, Suite 311, Glancy Binkow & Goldberg LLP (Los Angeles), CA 90067
    310.201.915 310. 201-916 · info@glancylaw.com
  5. Law Offices of Brian M. Felgoise, P.C.
    Esquire at 261 Old York Road, Suite 423, Law Offices of Brian M. Felgoise, P.C., PA 19046
    215.886.1900 · securitiesfraud@comcast.net
  6. Law Offices of Charles J. Piven, P.A.
    World Trade Center-Baltimore,401 East Pratt Suite 2525, Law Offices of Charles J. Piven, P.A., MD 21202
    410.332.0030 · pivenlaw@erols.com
  7. Lerach Coughlin Stoia Geller Rudman & Robbins LLP (Los Angeles)
    355 S. Grand Avenue, Suite 4170, Lerach Coughlin Stoia Geller Rudman & Robbins LLP (Los Angeles), CA 90071
    213.617.9007 213.617.9185 · info@lerachlaw.com
  8. Lerach Coughlin Stoia Geller Rudman & Robbins LLP (San Diego)
    401 B Street, Suite 1700, Lerach Coughlin Stoia Geller Rudman & Robbins LLP (San Diego), CA 92101
    206.749.5544 206.749.9978 · info@lerachlaw.com
  9. Milberg Weiss Bershad & Schulman LLP
    355 South Grand Avenue, Suite 4170, Milberg Weiss Bershad & Schulman LLP , CA 90071
    213.617.9007 213.617.9185 · info@milbergweiss.com
  10. Pomerantz LLP (New York)
    600 Third Avenue, Pomerantz LLP (New York), NY 10016
    212.661.1100 212.661.8665 · info@pomerantzlaw.com/
  11. Schatz & Nobel, P.C.
    330 Main Street, Schatz & Nobel, P.C., CT 06106
    800.797.5499 860.493.6290 · sn06106@AOL.com
  12. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
No Document Title Filing Date
COURT: S.D. California
DOCKET #: 05-CV-00823
JUDGE: Hon. Marilyn L. Huff
DATE FILED: 10/17/2005
CLASS PERIOD START: 08/18/2004
CLASS PERIOD END: 08/25/2005
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Lerach Coughlin Stoia Geller Rudman & Robbins LLP (Los Angeles)
    355 S. Grand Avenue, Suite 4170, Lerach Coughlin Stoia Geller Rudman & Robbins LLP (Los Angeles), CA 90071
    213.617.9007 213.617.9185 · info@lerachlaw.com
  2. Lerach Coughlin Stoia Geller Rudman & Robbins LLP (San Diego)
    401 B Street, Suite 1700, Lerach Coughlin Stoia Geller Rudman & Robbins LLP (San Diego), CA 92101
    206.749.5544 206.749.9978 · info@lerachlaw.com
No Document Title Filing Date
No Document Title Filing Date