Vestis Corporation
Company Name | Vestis Corporation |
Stock Symbol | VSTS |
Class Period | October 02, 2023 to May 01, 2024 |
Lead Plaintiff Motion Deadline | July 16, 2024 |
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disclose that: (1) Aramark had historically underinvested in the business that became Vestis; (2) Vestis operated with outdated facilities and an underperforming sales force; (3) Vestis's outdated facilities and underperforming sales force led to "service gaps" that had impeded the Company's levers of growth and had resulted in customer attrition; and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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