PetMed’s repeated delays spark fraud probe and stock market turmoil
PetMed Express, Inc. has faced repeated delays in releasing its financial reports, triggering sharp drops in its stock price. The company’s latest announcement—postponing its 2025 Annual Report—has drawn further scrutiny, with law firm Pomerantz LLP now investigating potential misconduct by top executives.
The troubles began when PetMed failed to file its third quarter 2025 report on time. The delay, attributed to an ongoing internal investigation, caused the stock to plummet by 32.41%. Investors reacted again in November when the company pushed back its fourth quarter and full-year 2025 earnings, citing an extended audit process. This time, shares dropped by 11.22%.
Most recently, PetMed announced another postponement—this time for its 2025 Annual Report. The reason given was an internal review of revenue recognition practices. Within a day, the stock fell by 1.51%. Legal pressure has since intensified. Pomerantz LLP is now examining claims of possible securities fraud, focusing on CEO Menderes Akdag and other unnamed executives. The investigation stems from a class action lawsuit filed in 2024 in the U.S. District Court for the Southern District of Florida, alleging wrongdoing by company officers and directors.
The repeated delays and legal scrutiny have weighed heavily on PetMed’s market performance. With the company’s financial disclosures still pending, investors await further updates on both the audit findings and the outcome of the ongoing investigation.
