By SETH HETTENA
Associated Press Writer

SAN DIEGO (AP) --Petco Animal Supplies, Inc., the nation's No.2 pet supply chain, will pay more than $900,000 to settle two lawsuits that accused the company of mistreating animals and overcharging customers.

The settlements announced Thursday resolve both a lawsuit against the San Diego- based chain brought by district attorneys in four California counties along with a separate action filed in 2002 by San Francisco's city attorney.

In San Francisco, city inspectors and customers documented sick and dying animals kept in freezers; untreated animals with contagious diseases; animals in unclean enclosures with no water; freezers filled with dead birds; and reptiles and fish left dead in display tanks, according to City Attorney Dennis Herrera.

A four-year investigation by district attorneys in San Diego, Los Angeles, Marin and San Mateo counties found animals were kept in unclean cages and lacked proper nutrition and veterinary care, said Deputy District Attorney Tricia Pummill. The district attorneys' investigation also found Petco price scanners overcharged on certain items by an average of $1.19, she said.

Petco, which admitted no wrongdoing as part of the settlements, agreed to pay fines totaling $600,000. The company also will spend more than $200,000 to install improved pricing accuracy equipment at all its California stores and more than $101,000 to cover the costs of the district attorneys' investigation.

"We are pleased to have resolved these matters on terms that are consistent with comprehensive policies and practices already utilized by Petco to serve the best interests of our customers and companion animals in our care," said Darragh Davis, a vice president and corporate counsel.

Over the next five years, Petco will conduct daily inspections of pets for sale at all of its California stores and ensure that the animals are kept in clean cages with adequate food and drink. Customers who are overcharged in the future will receive discounts of up to $3 off the overpriced item, said San Diego County District Attorney Bonnie Dumanis.

Petco, which reported $1.65 billion in sales for 12 months ending Jan. 31, has 670 stores in 44 states and Washington, D.C.

The company is still facing a boycott from People for the Ethical Treatment of Animals, or PETA, over what the group alleges is the company's pattern of mistreating animals.

@ 2004 The Associated Press.