Vestis Corporation Class Action Lawsuit - VSTS

24 days left to seek lead plaintiff status

Case Summary

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The Vestis class action lawsuit seeks to represent purchasers of Vestis Corporation (NYSE: VSTS) common stock between October 2, 2023 and May 1, 2024, inclusive (the “Class Period”).  Captioned Plumbers, Pipefitters and Apprentices Local No. 112 Pension Fund v. Vestis Corporation, No. 24-cv-02175 (N.D. Ga.), the Vestis class action lawsuit charges Vestis and certain of Vestis’ top executives with violations of the Securities Exchange Act of 1934.

If you suffered substantial losses and wish to serve as lead plaintiff of the Vestis class action lawsuit, please provide your information in the form on this page.  You can also contact attorney J.C. Sanchez or Jennifer N. Caringal of Robbins Geller by calling 800/449-4900 or via e-mail at info@rgrdlaw.com.  Lead plaintiff motions for the Vestis class action lawsuit must be filed with the court no later than July 16, 2024.

CASE ALLEGATIONS: Vestis is a uniform services and workplace supplies company that was created as a result of its September 2023 spinoff from Aramark.

The Vestis class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) Aramark had historically underinvested in the business that became Vestis; (ii) Vestis operated with outdated facilities and an underperforming sales force; and (iii) Vestis’ outdated facilities and underperforming sales force led to “service gaps” that had impeded Vestis’ lever of growth and had resulted in customer attrition.

The Vestis class action lawsuit further alleges that on May 2, 2024, Vestis announced disappointing revenue results for the second quarter of 2024 including, among other things, reported quarterly revenues of $705 million – just a 0.9% increase from the same fiscal quarter a year before.  The complaint further alleges that Vestis also announced it “now expect[ed] to deliver fiscal 2024 revenue growth in the range of [negative] (1)% to 0%.”  On this news, the price of Vestis common stock fell nearly 45%, according to the Vestis class action lawsuit. 

THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Vestis common stock during the Class Period to seek appointment as lead plaintiff in the Vestis class action lawsuit.  A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class.  A lead plaintiff acts on behalf of all other class members in directing the Vestis class action lawsuit.  The lead plaintiff can select a law firm of its choice to litigate the Vestis class action lawsuit.  An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the Vestis class action lawsuit.

ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: Robbins Geller Rudman & Dowd LLP is one of the world’s leading complex class action firms representing plaintiffs in securities fraud cases.  The Firm was ranked #1 on the ISS Securities Class Action Services Top 50 Report for recovering more than $1.75 billion for investors in 2022 – the third year in a row Robbins Geller topped the list.  And in those three years alone, Robbins Geller recovered nearly $5.3 billion for investors, more than double the amount recovered by any other plaintiffs’ firm.  With 200 lawyers in 10 offices, Robbins Geller is one of the largest plaintiffs’ firms in the world and the Firm’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig.

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