Petco’s Wellness Pitch Goes to the Dogs—Investors Sue

Petco left investors chasing their own tails after company execs barked about a pandemic-fueled boom and a health-focused future . . . that turned out to be an empty dish. When reality sank in, Petco’s stock dropped nearly 19%.  Now, investors are suing the company in a securities class action.

Beginning in early 2021, Petco’s top dogs painted a picture of sustainable growth. They cited “pet humanization,” strong premium food demand, and booming health services. Over the course of years, Petco’s earnings call and paperwork kept telling investors the company was doing great.  But, that was all bark, no bite. 

The health focus didn’t hold. The lawsuit says Petco downplayed fading pandemic trends, worsening supply chains, and shrinking demand. Sales slumped. The wellness story unraveled. By mid-2025, Petco dropped its full-year guidance.

In May, shares plunged 19% after Petco announced a jaw-dropping $47 million loss.

Now more investors are joining the lawsuit.