Several pet stores and animal breeders battled legal matters this summer, drawing the glare of the media spotlight. The biggest news: A federal judge in Phoenix in August dismissed a class action lawsuit against Petland Inc. (Chillicothe, Ohio) and Hunte Corp. (Goodman, Mo.), ruling that the complaint failed to set forth any legally viable claims. The lawsuit, filed by six individuals and supported by the Humane Society of the United States (Washington), alleged that the companies conspired to sell dogs bred in substandard conditions.

It wasn’t all good news for Petland, however. Later in August, the company terminated the owner-franchise agreement of a store in Akron, Ohio, after an employee appeared in a photo on her Facebook page with two allegedly drowned rabbits. Liz Carlisle was charged with two misdemeanor counts of cruelty to animals in Akron Municipal Court, according to published reports. She pleaded not guilty and her case was pending at press time.

Here are other incidents that put the industry in the spotlight this summer:

• PetSmart Inc. (Phoenix) settled a $125,000 federal sexual harassment case and retaliation lawsuit filed by the U.S. Equal Employ­ment Opportunity Commission (Washington). The suit alleged a store manager sexually harassed female employees in two Pennsylvania stores, first in Pottstown and then in Wyomissing.
• A marketing director for Nestle Purina PetCare Co. (St. Louis) was indicted for felony fraud after he allegedly fabricated fake expense invoices and submitted them for reimbursement, according to published reports. A St. Louis federal grand jury indicted Thomas Faulkner on one felony count of mail fraud July 1. He pleaded not guilty in U.S. District Court.
• A Canadian judge ordered an Ontario woman to pay a Quebec dog kennel $14,000, ruling she defamed Paws “R” Us Kennel online. Deputy Judge M. Galligan said Lorie Dixon acted in a malicious manner by posting online warnings about the commercial dog breeding business and calling it a “puppy mill.”
• Judge John P. Shook approved a $4.8 million default judgment awarded to former customers of the now-defunct Los Angeles store Pets of Bel Air. According to the lawsuit, the store claimed that its puppies came from private breeders when they actually came from larger breeding operations in the Midwest.

—By Michelle Peterson [October 2009 PET AGE]