On November 27, 2017, Pomerantz LLP was appointed Lead Counsel in a class action lawsuit against PetMed Express, Inc. ("PetMed" or the "Company") and certain of its officers. The class action, filed in United States District Court, Southern District of Florida, and docketed under 17-cv-81019, is on behalf of a class consisting of investors who purchased or otherwise acquired PetMed securities, seeking to recover compensable damages caused by defendants' violations of the Securities Exchange Act of 1934.
PetMed Express, Inc. and its subsidiaries, doing business as 1-800-PetMeds, operates as a pet pharmacy in the United States. The Company markets prescription and non-prescription pet medications, health products, and supplies for dogs and cats to retail customers.
The complaint alleges that throughout the Class Period, defendants made materially false and misleading statements regarding the Company's business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) PetMed engaged in questionable practices in connection with the sales and marketing of the Company's opioid products; (ii) the foregoing conduct, when it became known, would likely subject the Company to heightened legal and regulatory scrutiny; and (iii) as a result of the foregoing, PetMed's public statements were materially false and misleading at all relevant times.
On August 23, 2017, Aurelius Value published a report entitled "PetMed: Exploiting America's Opioid Epidemic," alleging that the Company targets opioid users with Google ads and other marketing techniques aimed at facilitating the abuse of opioids.
On this news, PetMed's share price fell $3.19, or 8.09%, to close at $36.22 on August 23, 2017.