Petco Investor Drops Post-Pandemic Slowdown, Stock Dips Lawsuit

A Petco Health & Wellness Co. investor dropped proposed class claims that the pet retailer misrepresented the sustainability of its Covid-19 pandemic growth on a premium goods strategy.

The court-appointed lead plaintiff told the US District Court for the Southern District of California he was voluntarily dismissing the lawsuit Tuesday. The suit had said Petco kept pushing that its pivot toward more healthful, expensive products was a viable strategy as pandemic tailwinds wound down. But retaining the focus on premium pet goods backfired, the suit said, spurring stock drops after disappointing updates on its growth and profitability metrics.

• Lead plaintiff ...