SAN FRANCISCO, CA / ACCESSWIRE / June 10, 2024 / National plaintiffs law firm Lieff Cabraser Heimann & Bernstein, LLP encourages investors in Vestis Corporation ("Vestis" or the "Company") (NYSE:VSTS) who suffered losses from purchasing Vestis common stock between October 2, 2023 and May 1, 2024, inclusive (the "Class Period"), to contact us immediately regarding a pending securities class action against Vestis. The deadline to apply to be lead plaintiff is July 16, 2024.
Class Period: October 2, 2023 - May 1, 2024
Lead Plaintiff Motion Deadline: July 16, 2024
Case information:lieffcabraser.com/securities/vestis
Contact us: Email or text investorinfo@lchb.com or call 1-800-541-7358
Vestis is a uniform services provider that provides rental uniforms and workplace supplies to businesses throughout the United States and Canada. The Company used to operate as the Uniform Services division of Aramark, a food and facilities services provider, until it was spun off as an independent publicly traded company in September 2023.
The action alleges that during the Class Period, Vestis misrepresented and failed to disclose materially adverse facts regarding the Company's operations, including that: (i) Aramark had not invested sufficiently in its Uniform Services division prior to the spinoff of Vestis, and (ii) as a result, the Company had experienced services gaps and was not in a position to meet the growth projections that defendants touted.
On May 2, 2024, before the market closed, Vestis released disappointing financial results for the second quarter of fiscal year 2024. The Company lowered its outlook for fiscal year 2024, reporting projected revenue growth of negative 1% to 0%. During the Company's earnings conference call with analysts and investors held later that day, the Company's Chief Executive Officer, defendant Kimberly Scott, said that "service gaps have driven price sensitivity." Analysts were surprised by the Company's announcements, including a JP Morgan analyst who remarked, "[a]s you had articulated, your plan had been just a couple of months ago for a targeted area price increase, and then you pivoted to a price decrease." On this news, Vestis's common stock price fell $8.31 per share, or 45%, from its closing price of $18.47 per share on May 1, 2024, to close at $10.16 per share on May 2, 2024, on unusually heavy trading volume.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with over 125 attorneys in offices in San Francisco, New York, Nashville, and Munich, Germany, is an internationally-recognized law firm committed to advancing the rights of investors and promoting corporate responsibility. Repeatedly recognized as a "Plaintiffs' Powerhouse" by Law360, Lieff Cabraser has litigated some of the most important civil cases in the United States, and has assisted clients in recovering over $129 billion in verdicts and settlements. For over 50 years, Lieff Cabraser has remained committed to ensuring access to justice for all.
Source/Contact
Sharon Lee
Lieff Cabraser Heimann & Bernstein, LLP
415 956-1000
slee@lchb.com
SOURCE: Lieff Cabraser Heimann & Bernstein, LLP
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