The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Vestis Corporation (“Vestis” or the “Company”) (NYSE: VSTS) common stock between October 2, 2023 and May 1, 2024, inclusive (the “Class Period”). Vestis investors have until July 16, 2024 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
On May 2, 2024, Vestis released its second quarter FY2024 financial results, falling below expectations and revising its 2024 outlook, reporting that it “now expect[ed] to deliver fiscal 2024 revenue growth in the range of [negative] (1)% to 0%.” The Company blamed “challenges . . . related to sales productivity and deliberate moderated pricing actions” for the disappointing results.
On this news, Vestis’s stock price fell $8.31, or 45%, to close at $10.16 per share on May 2, 2024, thereby injuring investors.
The complaint alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose: (1) Aramark had historically underinvested in the business that became Vestis; (2) Vestis operated with outdated facilities and an underperforming sales force; (3) Vestis’s outdated facilities and underperforming sales force led to “service gaps” that had impeded the Company’s levers of growth and had resulted in customer attrition; and (4) as a result of the foregoing, Defendants’ public statements were materially false and misleading at all relevant times.
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If you purchased Vestis common stock during the Class Period, you may move the Court no later than July 16, 2024 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased Vestis securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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View source version on businesswire.com: https://www.businesswire.com/news/home/20240715869153/en/
The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of Vestis Corporation (VSTS) Investors
Contacts
The Law Offices of Frank R. Cruz, Los Angeles
Frank R. Cruz, 310-914-5007
fcruz@frankcruzlaw.com
www.frankcruzlaw.com
