Investing.com - PetMed Express Inc (NASDAQ:PETS) has called the report by Aurelius Value that stoked a big sell-off in PetMed's stock today “false and defamatory”.
Aurelius Value released a report, claiming that PetMed’s bullish results the past two-quarters were a result of the company promoting its opioids to humans, not pets. This sent shares on a tailspin Wednesday. They fell up to 14% on eleven times the regular trading volume.
n response, PetMed issued a press release stating: “ We believe that this “report” was intended to severely manipulate our stock price downward in support of short sellers. PetMed Express, Inc. categorically denies the allegations and its implications. We are in the process of reporting this manipulation to the appropriate regulators. While the Company dispenses Tramadol and Gabapentin, which represent less than 1% of annual revenue, it is done exclusively pursuant to valid prescriptions from veterinarians for the treatment of animals only.”
The company said it would "vigorously" defend itself against the false allegation, and it is reviewing all legal options.
PetMed shares trimmed their losses following the company’s response. Shares were down 9% in the final stretch to the closing bell.