PETCO Animal Supplies, Inc.

Robbins Arroyo LLP represented the public shareholders of PETCO Animal Supplies, Inc., the second-largest retailer of specialty pet supplies in the United States, in a class action against several of the company’s insiders, directors and affiliates for self-dealing and breach of fiduciary duty. Shareholders alleged that PETCO insiders and directors were attempting to sell the company at an unfairly low price to its own affiliates in a going private transaction. Shareholders further alleged that an alternate bidder had offered to buy PETCO at a significantly higher price per share, and had even offered to shoulder the great majority of any financial risk that could be associated with the sale.

The class action sought to enjoin PETCO’s insiders, directors, and affiliates from consummating any sale of PETCO unless and until the company implemented a procedure to ensure that PETCO’s shareholders received the highest possible price for the sale. Over the course of three years of contentious litigation, our attorneys engaged in extensive motion practice and significant document, expert, and witness discovery. Shortly before the case went to trial, Robbins Arroyo LLP assisted in achieving a settlement of the class action, which secured a $16 million settlement fund to be distributed to the class of shareholders.

In re PETCO Animal Supplies, Inc. Shareholder Litigation, Lead Case No. GIC 869399 (Superior Court of the State of California San Diego March 26, 2010).

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