Petco Sued Over Post-Pandemic Consumer Patterns, Stock Drops (1)

Petco Health and Wellness Co.'s move toward selling premium pet goods during the Covid-19 pandemic backfired, leaving the company with financial setbacks that caused a series of stock-price declines, an investor alleges.

The retailer and its top executives misrepresented the sustainability of its growth during the pandemic, when more people adopted pets and younger pet owners purportedly favored more healthful products with higher price tags, investor Joshua Spurbeck says. He filed his proposed class action Monday in the US District Court for the Southern District of California.

As early as mid-2023, Petco’s “financial performance took a notable turn for the ...