PETC Petco Animal Supplies

Federman & Sherwood Announces That a Securities Class Action Lawsuit Was Filed Against PETCO Animal Supplies, Inc. OKLAHOMA CITY, April 19 /PRNewswire/ -- On April 18, 2005, the class action lawsuit was filed in the United States District Court for the Southern District of California against PETCO Animal Supplies, Inc. (NASDAQ:PETC) ("PETCO"). The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material misrepresentations to the market which had the effect of artificially inflating the market price. The class period is from November 18, 2004 through April 14, 2005. On November 18, 2004, PETCO announced Q3 2004 results and raised its guidance for FY 2004. The Company subsequently issued favorable results for FY 2004. 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. Plaintiff seeks to recover damages on behalf of the Class. If you are a member of the Class as described above, you may move the Court no later than June 17, 2005, to serve as a lead plaintiff for the Class. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995. If you wish to discuss this action, participate in this suit, or have any questions or concerns regarding this notice, or preservation of your rights, please contact: William B. Federman FEDERMAN & SHERWOOD 120 N. Robinson, Suite 2720 Oklahoma City, OK 73102 (405) 235-1560/FAX: (405) 239-2112 mail to: http://www.federmanlaw.com/ DATASOURCE: Federman & Sherwood CONTACT: William B. Federman of Federman & Sherwood, +1-405-235-1560, or fax, +1-405-239-2112, or Web site: http://www.federmanlaw.com/

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