Cintas Corporation Class Action Lawsuit
- Company Name
- Cintas Corporation
- Stock Symbol
- Class Period
- March 6, 2017 to November 13, 2019
- Motion Deadline
- February 10, 2020
- Southern District of Ohio
On December 12, 2019, the Cintas Corporation class action lawsuit was filed charging Cintas and certain of its officers with violations of the Securities Exchange Act of 1934. The Cintas class action lawsuit was commenced in the Southern District of Ohio on behalf of purchasers of Cintas publicly traded securities between March 6, 2017 and November 13, 2019 (the “Class Period”) and is captioned Stafford v. Cintas Corporation, et al. No. 19-cv-01054.
Cintas provides corporate uniforms and related business services in North America, Latin America, Europe, and Asia. In March 2017, Cintas acquired G&K Services, Inc. (“G&K”), a Minnesota-based company that provides services related to the rental and laundering of branded uniforms.
The Cintas class action lawsuit alleges that throughout the Class Period, defendants made false and misleading statements and/or failed to disclose adverse information regarding Cintas’s business and operations, including information regarding its integration of G&K. Specifically, defendants failed to disclose that, contrary to their statements that the G&K acquisition would improve Cintas’s margins when discussing the acquisition with investors, Cintas never developed or implemented measures to track Cintas’s legacy margins following the G&K acquisition. In addition, Cintas repeatedly set low financial projections, only to raise and beat them as part of a “Beat and Raise” scheme, and materially breached the law on at least three occasions, which could jeopardize Cintas’s credit agreement. As a result of this information being withheld from the market, Cintas securities traded at artificially inflated prices during the Class Period, with its shares reaching a high of more than $275 per share.
Then on November 13, 2019, Spruce Point Capital issued a report on Cintas alleging that Cintas had never developed or implemented measures to track its legacy margins, that Cintas had repeatedly set low financial projections only to raise and beat them, and that Cintas’s Fire Protection Services business had materially breached the law on at least three occasions, jeopardizing its credit agreement. According to Spruce Point, it was able to obtain information through a Freedom of Information Act request regarding Cintas’s Fire Protection Services’ breaches of law, including unlicensed employees of Cintas filling out paperwork regarding fire systems in buildings in Illinois and Indiana, and Cintas’s failure to ensure that a haul truck’s fire suppression system was installed and maintained resulting in a death on September 7, 2018. On this news, the price of Cintas shares fell $3.61 per share to close at $255.24 per share on November 13, 2019.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Cintas publicly traded securities during the Class Period to seek appointment as lead plaintiff in the Cintas class action lawsuit. A lead plaintiff will act on behalf of all other class members in directing the Cintas class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Cintas class action lawsuit. An investor’s ability to share in any potential future recovery of the Cintas class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff of the Cintas class action lawsuit or have questions concerning your rights regarding the Cintas class action lawsuit, please provide your information here or contact counsel, Brian E. Cochran of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. Lead plaintiff motions for the Cintas class action lawsuit must be filed with the court no later than February 10, 2020.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For six consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.