Several class actions have been filed against pet pharmaceutical company PetMed Express, Inc. (Nasdaq:PETS), and certain of its officers and directors by stockholders who purchased the company's common stock between June 18, 2003, and July 26, 2004. The actions claim that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock.

The actions allege that the defendants issued a series of statements to the market regarding PetMed's financial results and operations, but failed to disclose and/or misrepresented that: (1) the company's business model enabled it to experience sustained financial growth only because it shifted costs to veterinarians, who are also its main competitors; (2) the company’s business model made it dependent on the cooperation of veterinarians to fill prescriptions; (3) the defendants could not guarantee the quality, safety, or efficacy of PetMed-dispensed drugs because, as an unauthorized reseller of many products, it had to obtain such products through unauthorized channels, prompting veterinarians to refuse refilling prescriptions through PetMed, and (4) as a result, PetMed’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, the defendants and other company insiders allegedly sold almost $65 million in privately-held PetMed's stock.

If you purchased securities issued by PetMed Express during the applicable period, you may request appointment by the court as a lead plaintiff if you do so by October 18, 2004. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that your claim is typical of the claims of other class members, and that you will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiffs. Your ability to share in any recovery is not affected by the decision whether or not to serve as a lead plaintiff. You may retain any counsel of your choice to serve you in this action, or you may choose to do nothing, and remain in the class as a silent member.