Stull, Stull & Brody Announces Class Action Against Henry Blodget and Merrill Lynch Relating to Pets.com, Inc

Business Wire, June 11, 2002

Business Editors

NEW YORK--(BUSINESS WIRE)--June 11, 2002

Notice is hereby given that a class action lawsuit was filed on June 11, 2002 in the United States District Court for the Southern District of New York, on behalf of purchasers of the common stock of Pets.com, Inc. ("Pets.com" or the "Company") (OTCBB:IPET)(OTC:IPETZ.PK) between March 7, 2000 and November 7, 2000, inclusive (the "Class Period") against defendants Merrill Lynch & Co., Inc. ("Merrill Lynch") and its former star Internet research analyst, First Vice President Henry M. Blodget ("Blodget"), who are charged with issuing misleading analyst reports about Pets.com.

The complaint alleges that Defendants violated the federal securities laws by issuing analyst reports regarding Pets.com that recommended the purchase of Pets.com common stock and which set price targets for Pets.com common stock, which were materially false and misleading and lacked any reasonable factual basis. The complaint further alleges that, when issuing their Pets.com analyst reports, the Defendants failed to disclose significant, material conflicts of interest, which resulted from their use of Blodget's reputation and his ability to issue favorable analyst reports, to obtain investment banking business for Merrill Lynch. Furthermore, in issuing their Pets.com analyst reports, in which they recommended the purchase of Pets.com stock, the Defendants failed to disclose material, non-public, adverse information which they possessed about Pets.com. Throughout the Class Period, the Defendants maintained "ACCUMULATE/ACCUMULATE" or "BUY/BUY" recommendations on Pets.com in order to obtain and support lucrative financial deal for Merrill Lynch. As a result of Defendants' false and misleading analyst reports, Pets.com's common stock traded at artificially inflated levels during the Class Period.

If you purchased Pets.com common stock between March 7, 2000 and November 7, 2000, inclusive, you may, no later than July 9, 2002, request the Court appoint you as lead plaintiff.

A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Stull, Stull & Brody, or other counsel of your choice, to serve as your counsel in this action.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Tzivia Brody, Esq. at Stull, Stull & Brody by calling toll-free 1-800-337-4983, or by e-mail at SSBNY@aol.com, or by fax at 212/490-2022, or by writing to Stull, Stull & Brody, 6 East 45th Street, New York, NY 10017.