Zoetis Lawsuit Submission Form

Introduction

A securities class action lawsuit has been filed against Zoetis Inc. (NYSE: ZTS) and two of its senior executives on behalf of investors who purchased or acquired Zoetis securities between January 14, 2025 and May 6, 2026. The complaint alleges that throughout the Class Period, defendants made materially false and misleading statements about the strength, competitive positioning, and growth trajectory of Zoetis' flagship Companion Animal products, including Librela, Apoquel, Cytopoint, and Simparica Trio, while concealing that serious FDA safety warnings were eroding veterinarian confidence in Librela, that intensifying competition from lower-priced rivals was capturing significant market share in both the dermatology and parasiticides categories, and that these converging pressures were materially undermining the segment's sales growth and financial outlook. As the truth emerged through a series of disclosures between August 2025 and May 2026, Zoetis' stock price suffered steep declines, culminating in a single-day drop of 21.5% on May 7, 2026, when the Company reported sharply deteriorating first quarter 2026 results and slashed its full-year guidance.

Company Profile

Zoetis Inc. is an animal health company headquartered in Parsippany, New Jersey, that develops, manufactures, and sells vaccines, medicines, diagnostics, biopharmaceuticals, and digital solutions for companion animals and livestock. The Company's Companion Animal segment, which accounted for approximately 70% of overall revenue as of year-end 2025, includes flagship products such as Librela (a monthly injection for canine osteoarthritis pain), Apoquel and Cytopoint (dermatology treatments for allergies and itching in dogs), and Simparica Trio (a monthly chewable for flea, tick, heartworm, and intestinal parasite protection).

Class Period

January 14, 2025 – May 6, 2026

Investors who purchased or acquired Zoetis Inc. (ZTS) securities during the Class Period may have claims and may be eligible to seek recovery under the federal securities laws.

Allegations

The complaint alleges that Zoetis and its CEO, Kristin Peck, and CFO, Wetteny Joseph, repeatedly assured investors throughout the Class Period that the Company's core Companion Animal franchises were delivering durable, accelerating growth driven by expanding markets, rising market share, and strong veterinarian adoption. Beginning at the JP Morgan Healthcare Conference on January 14, 2025, and continuing through earnings calls, investor conferences, and industry events over the following sixteen months, defendants characterized Zoetis as the "market leader" in dermatology, touted Librela as "the most successful" launch in the Company's history, and portrayed Simparica Trio as the "trusted first choice" for veterinarians despite the entrance of new competitors.

According to the complaint, these statements were materially false and misleading because defendants knew or recklessly disregarded that each of the Company's three core Companion Animal franchises faced serious, undisclosed headwinds. In the pain management category, veterinarian prescription growth and adoption of Librela were sharply weakening following the FDA's December 2024 issuance of a "Dear Veterinarian" letter describing severe adverse neurological events in dogs treated with the drug, including seizures and deaths. Rather than acknowledge these safety-driven declines, defendants repeatedly dismissed the significance of the FDA's warnings, with Defendant Peck calling the letter "terribly helpful" and Defendant Joseph describing the resulting label update as "not unexpected" and "well-received" by veterinarians. The complaint alleges these characterizations concealed that clinicians were in fact becoming more cautious about prescribing Librela, directly undermining the sales growth defendants were projecting.

In the parasiticides market, the complaint alleges that Simparica Trio was losing significant market share to Elanco's Credelio Quattro, a competing product priced below Simparica Trio that offered broader coverage including tapeworm protection. Despite these competitive losses, Defendant Joseph repeatedly told investors that Zoetis was "gaining share," had "not experienced year-over-year patient share loss," and grew 25% in the first year of head-to-head competition. Similarly, in dermatology, the complaint alleges that Zoetis' Apoquel and Cytopoint were losing substantial market share to Elanco's Zenrelia, which was marketed as comparable or superior to Apoquel in clinical studies at a lower price point. Nevertheless, defendants characterized competitive impact as "minimal" and "very limited" and insisted that Zoetis' dermatology franchise remained "resilient" and "durable."

The complaint further alleges that even as partial corrective disclosures on August 5, 2025, November 4, 2025, and February 12, 2026 revealed progressively worsening trends across the Companion Animal segment, defendants continued to reassure investors with statements about the Company's "resilient growth engine," "trusted brands," and "position of strength," thereby prolonging the artificial inflation of Zoetis' stock price.

The Truth Emerges

The truth behind defendants' misrepresentations was revealed over the course of four disclosures spanning from August 5, 2025 to May 7, 2026. On August 5, 2025, Zoetis released second quarter 2025 results that revealed unexpected weakness in the Company's flagship pain franchise, prompting analysts to question the sustainability of the Companion Animal segment's long-term growth. On November 4, 2025, third quarter results showed further slowing growth across the key Companion Animal franchises, and the Company lowered its full-year sales outlook, disclosing continued weakness in Librela sales and increased competitive pressure in both dermatology and parasiticides. On February 12, 2026, fourth quarter and full-year 2025 results, along with 2026 guidance, reflected further slowing growth and acknowledged increasing competitive pressures in parasiticides and dermatology.

The most significant revelation came on May 7, 2026, when the Company reported first quarter 2026 financial results reflecting significant deterioration across its core Companion Animal business. Zoetis sharply reduced its full-year guidance and, for the first time, explicitly acknowledged that "competition intensified across key pet care categories, including dermatology and parasiticides," that "pet owners demonstrated increased price sensitivity," and that new competitive entrants had "not yet translated into overall market expansion." The Company further admitted that "share loss is being amplified by a derm market with declining patient volume in the clinic" and that it was operating in "a more price sensitive and competitive environment," directly contradicting the sustained optimism defendants had expressed throughout the Class Period.

Market Reaction

Zoetis' stock price suffered a series of significant declines as the market absorbed the corrective disclosures. On August 5, 2025, ZTS fell $5.69 per share, or 3.8%, to close at $146.12. On November 4, 2025, the stock dropped approximately $19.89 per share, or 13.8%, closing at approximately $124.46. On February 12, 2026, ZTS declined approximately $3.03 per share, or 2.35%, to close at $125.64.

The steepest single-day decline came on May 7, 2026, when first quarter 2026 results and the sharply reduced full-year guidance triggered a drop of approximately $23.91 per share, or 21.5%, with ZTS closing at approximately $87.31. In total, these disclosures reflected the progressive unwinding of the artificial inflation that defendants' misrepresentations had sustained throughout the Class Period.

Next Steps

●        Lead Plaintiff Deadline: July 27, 2026

●        After the lead plaintiff deadline, the Court will consider any lead plaintiff motions.

●        If the case proceeds, the Court may later consider class certification.

●        Defendants may also file a motion to dismiss.

Disclaimer: This shareholder alert is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for personalized guidance. No specific outcomes are guaranteed.

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