We are investigating PetIQ, Inc. (PETQ) (“PetIQ” or the “Company”) for potential violations of the federal securities laws.
On April 30, 2019, Spruce Point Capital Management (“Spruce Point”) issued a report regarding PetIQ, entitled “A Flea And Tick Infested Investment”, asserting that the Company’s stock was significantly overvalued due “the company’s dubious past and questionable management team”, among other issues. Specifically, Spruce Point alleged that PetIQ’s “apparent predecessor . . . was accused of stealing hundreds of thousands of dollars’ worth of pet medication from vets before allegedly reincorporating as a registered subsidiary of “True Science Holdings,” later renamed PetIQ”, and that “True Science appears to have formed non-arms-length relationships with veterinary drug wholesalers through the first half of the 2010s, and was later accused of using these relationships to manufacture inflated assets and earnings.” Following publication of the Spruce Point report, PetIQ’s stock price fell sharply during intraday trading on April 30, 2019.