Petco Board, Execs Blamed for Stock Drop on Post-Covid Slump (1)

Petco Health and Wellness Co.'s leaders breached their fiduciary duties to the company and exposed it to potential liability by misrepresenting the sustainability of its pandemic growth, an investor alleges.

Petco directors and executives failed to disclose that the pet product retailer’s “explosive growth was a temporary result” of higher pet adoption rates during the Covid-19 pandemic, Jherome Deguzman says on behalf of the company. He filed his derivative complaint Friday in the US District Court for the Southern District of California.

They also didn’t disclose that Petco’s “shifting focus toward offering healthy ...