NEW YORK, May 29, 2024 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against Vestis Corporation ("Vestis" or the "Company") (NYSE: VSTS). Such investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
The class action concerns whether Vestis and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
You have until July 16, 2024, to ask the Court to appoint you as Lead Plaintiff for the class if you are a shareholder who purchased or otherwise acquired Vestis securities during the Class Period. A copy of the Complaint can be obtained at www.pomerantzlaw.com.
[Click here for information about joining the class action]
On May 2, 2024, Vestis issued a press release reporting its financial results for the second quarter of fiscal year 2024. The Company reported revenue of $705 million, a mere 0.9% year-over-year increase. Chief Executive Officer ("CEO") Kimberly T. 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." 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%." During the corresponding earnings call that day, CEO Scott explained the "challenges" facing the Company "related to sales productivity and deliberate moderated pricing actions." Scott went on to explain, "We also made the recent and deliberate decision to moderate pricing actions in the second quarter and the back half of the fiscal year in order to realize improved retention while we enhance our services processes." The pricing decision, Scott added, "is negatively impacting our revenue and EBITDA in the second half of the year." Later during the same call, Scott revealed that "service gaps" had "driven price sensitivity." Scott added that "we know that more than 70% of the [customer] cancellations are due to causes that are within our control."
On this news, Vestis's stock price fell $8.31 per share, or 44.99%, to close at $10.16 per share on May 2, 2024.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
CONTACT:
Danielle Peyton
Pomerantz LLP
dpeyton@pomlaw.com
646-581-9980 ext. 7980
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SOURCE Pomerantz LLP
