NEW YORK, June 17, 2024 (GLOBE NEWSWIRE) -- Bernstein Liebhard LLP:
- Do you, or did you, own shares of Vestis Corporation (NYSE: VSTS)?
- Did you purchase your shares between October 2, 2023 and May 1, 2024, inclusive?
- Did you lose money in your investment in Vestis Corporation?
- Do you want to discuss your rights?
Bernstein Liebhard LLP announces that a securities class action lawsuit has been filed on behalf of investors who purchased or acquired the common stock of Vestis Corporation (“Vestis” or the “Company”) (NYSE: VSTS) between October 2, 2023 and May 1, 2024, inclusive (the “Class Period”). The lawsuit was filed in the United States District Court for the Northern District of Georgia and alleges violations of the Securities Exchange Act of 1934 against the Company and certain of its officers (the “Complaint”).
If you purchased or acquired Vestis common stock, and/or would like to discuss your legal rights and options please visit Vestis Corporation Shareholder Class Action Lawsuit or contact Joseph R. Seidman, Jr. at (877) 779-1414 or seidman@bernlieb.com.
Vestis was created as the result of its September 2023 spinoff from food service and facilities services provider Aramark, in which Vestis became an independent publicly traded company (the “Spinoff”). Prior to the Spinoff, the company that was to become Vestis operated as the Aramark Uniform Services division of Aramark, providing rental uniforms and workplace supplies, including uniform delivery; laundering for rental linens, floor mats, and towels; restroom services; and first-aid supplies.
According to the Complaint, Defendants failed to disclose to investors that: (1) Aramark had historically underinvested in the business that became Vestis; (2) Vestis operated with outdated facilities and an underperforming sales force; and (3) Vestis’ outdated facilities and underperforming sales force led to “service gaps” that had impeded the Company’s levers of growth and had resulted in customer attrition.
On May 2, 2024, Vestis issued a press release reporting its financial results for the second quarter of FY2024 ended March 29, 2024. The Company reported revenue of $705 million, a mere 0.9% year-over-year increase. CEO Scott was quoted in the press release, stating, “Our results in the quarter and our outlook for the year are not in line with expectations.” Indeed, in the press release, Vestis also provided a “Revised Fiscal Year 2024 Outlook,” reporting that it “now expect[ed] to deliver fiscal 2024 revenue growth in the range of [negative] (1)% to 0%.”
On this news, Vestis’ stock price fell $8.31 per share, or nearly 45%, to close at $10.16 per share on May 2, 2024.
If you wish to serve as lead plaintiff, you must move the Court no later than July 16, 2024. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
If you purchased or acquired Vestis common stock, and/or would like to discuss your legal rights and options please visit Vestis Corporation Shareholder Class Action Lawsuit or contact Joseph R. Seidman, Jr. at (877) 779-1414 or seidman@bernlieb.com.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for sixteen consecutive years.
ATTORNEY ADVERTISING. © 2024 Bernstein Liebhard LLP. The law firm responsible for this advertisement is Bernstein Liebhard LLP, 10 East 40th Street, New York, New York 10016, (212) 779-1414. Prior results do not guarantee or predict a similar outcome with respect to any future matter.
Contact Information:
Joseph R. Seidman, Jr.
Bernstein Liebhard LLP
https://www.bernlieb.com
(877) 779-1414
seidman@bernlieb.com
