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Labaton Keller Sucharow LLP Files Securities Class Action Against Zoetis, Inc. and Certain of Its Executives

businesswire.com
ZTS The article details a class action lawsuit against Zoetis alleging materially false and misleading statements regarding its Companion Animal segment. Specific products like Librela, Simparica Trio, Apoquel, and Cytopoint are mentioned as losing market share due to safety concerns, competition, and slowing adoption, leading to a significant stock price drop and reduced guidance.

Labaton Keller Sucharow LLP Files Securities Class Action Against Zoetis, Inc. and Certain of Its Executives NEW YORK--( BUSINESS WIRE)--Labaton Keller Sucharow LLP (“Labaton”) has filed a securities class action lawsuit (the “Action”) on behalf of its client the City of Ann Arbor Retiree Health Care Benefit Plan & Trust (“Ann Arbor RHC”) against Zoetis, Inc. (“Zoetis” or the “Company”) (NYSE: ZTS) and certain of its executives (collectively, “Defendants”). The Action, which is captioned City of Ann Arbor Retiree Health Care Benefit Plan & Trust v. Zoetis, Inc., No. 26-cv-04401 (S.D.N.Y.), asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and U.S. Securities and Exchange Commission Rule 10b-5 promulgated thereunder on behalf of all persons and entities that purchased or otherwise acquired Zoetis securities between January 14, 2025 and May 6, 2026, inclusive (the “Class Period”).

Zoetis is an animal health company that develops, manufactures, and sells vaccines, medicines, diagnostics, biopharmaceuticals, and digital solutions for companion animals and livestock. Zoetis’ Companion Animal products for dogs and cats are its most important line of business and its principal growth engine.

The Action alleges that, throughout the Class Period, Defendants made materially false and misleading statements concerning the growth, competitive positioning, market share, and veterinarian adoption of key products within the Companion Animal segment while failing to disclose that: (i) veterinarian prescription growth and adoption of Zoetis’ Librela, a canine pain treatment, were sharply weakening as clinicians became more cautious following FDA safety warnings concerning serious neurological complications in dogs; (ii) Zoetis’ Simparica Trio was losing significant market share to a lower priced competing canine parasiticide with broader indicated use in a slowing overall market; and (iii) Zoetis’ dermatology products, Apoquel and Cytopoint, were losing substantial market share to a newly launched competing canine treatment.

The market began to learn the truth about Defendants’ fraud through a series of disclosures beginning in August 2025 that revealed weakening demand trends, slowing veterinarian adoption, intensifying competitive pressures, and declining growth across Zoetis’ key Companion Animal franchises. Over the following months, additional disclosures further revealed the extent of the deterioration affecting the Company’s core growth products, culminating on May 7, 2026, when Zoetis reported first quarter 2026 financial results reflecting significant deterioration across its Companion Animal business and sharply reduced its full year guidance. On this news, Zoetis stock price dropped 21.5 percent, closing at $87.31 per share on May 7, 2026.

If you purchased or acquired Zoetis securities during the Class Period and were damaged thereby, you are a member of the “Class” and may be able to seek appointment as Lead Plaintiff. Lead Plaintiff motion papers must be filed no later than July 27, 2026. The Lead Plaintiff is a court-appointed representative for absent members of the Class. You do not need to seek appointment as Lead Plaintiff to share in any Class recovery in this action. If you are a Class member and there is a recovery for the Class, you can share in that recovery as an absent Class member. You may retain counsel of your choice to represent you in this action.

If you would like to consider serving as Lead Plaintiff or have any questions about this lawsuit, you may contact Connor C. Boehme, Esq. of Labaton at +1 (212) 907-0780, or via email at cboehme@labaton.com. You can view a copy of the Complaint online here.

Ann Arbor RHC is represented by Labaton, which represents many of the largest pension funds in the United States and internationally with combined assets under management of more than $6 trillion. Labaton’s litigation reputation is built on its half-century of securities litigation experience, more than ninety full-time attorneys, and in-house team of investigators, financial analysts, and forensic accountants. Labaton has been recognized for its excellence by the courts and peers, and it is consistently ranked in leading industry publications. Offices are located in New York, Delaware, London, and Washington, D.C. More information about Labaton is available at labaton.com.