NEW YORK, May 20, 2024 (GLOBE NEWSWIRE) — Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Northern District of Georgia on behalf of all persons or entities who purchased or otherwise acquired Vestis Corporation (“Vestis” or the “Company”) (NYSE: VSTS) securities between October 2, 2023 and May 1, 2024, inclusive (the “Class Period”). The lawsuit seeks to recover damages for the Company’s investors under the federal securities laws.
The Complaint in the proposed class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) Aramark had historically underinvested in the business that became Vestis; (ii) Vestis operated with outdated facilities and an underperforming sales force; and (iii) Vestis’ outdated facilities and underperforming sales force led to “service gaps” that had impeded Vestis’ lever of growth and had resulted in customer attrition.
The Complaint further alleges that on May 2, 2024, Vestis announced disappointing revenue results for the second quarter of 2024 including, among other things, reported quarterly revenues of $705 million – just a 0.9% increase from the same fiscal quarter a year before. The complaint further alleges that Vestis also announced it “now expect[ed] to deliver fiscal 2024 revenue growth in the range of [negative] (1)% to 0%.” On this news, the price of Vestis common stock fell nearly 45%, according to the Complaint.
Investors who purchased or otherwise acquired shares of Vestis should contact the Firm prior to the July 16, 2024 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
Please visit our website at http://www.gme-law.com for more information about the firm.
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