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.

If you bought PETCO Animal Supplies, Inc. securities between November 18, 2004 and April 14, 2005, inclusive, and would like to obtain information about the lawsuit, then you are invited to call (866) 467-1400 to speak with an attorney.