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VSTS.US
id: 1228
Vestis Corporation (VSTS) Underinvestment in Business Case
N.D. Georgia
Court1:24-cv-02175-SDG
Case number02 Oct 2023
Class period Start01 May 2024
Class period End16 Jul 2024
Lead Plaintiff motion deadline- $VSTS stockholder filed a claim against Vestis Corporation for underinvesting in the business, which negatively impacted performance.
- On May 2, 2024, on 2023 financials’ restatement news, $VSTS fell nearly 45%, losing substantial amount of shareholder value.
- Vestis investors can join this case to be notified about potential recovery.
Vestis is a uniform services and workplace supplies company that was created as a result of its September 2023 spinoff from Aramark.
The lawsuit claims that
- Aramark historically underinvested in the business that became Vestis;
- Vestis operated with outdated facilities and an underperforming sales force; and
- outdated facilities and underperforming sales force slowed Vestis’ growth and led to customer attrition.
On May 2, 2024, Vestis announced weak revenue results for Q2'24 with just a 0.9% increase from Q2'23. Vestis also announced expected 2024 negative revenue trend -1% to 0%. On this news, $VSTS plummeted nearly 45%.
Considering all the representations, investors have reasons to suspect that Vestis Corporation failed to disclose its long-standing performance deficiencies.
One of the investors has already filed a class action against Vestis in N.D. of Georgia court.
Case Status
Lead Plaintiff Submission
Alleged Offence
Misleading Statements,
Failure to Disclose,
Omissions
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
02 May 2024
Filing date
17 May 2024
Lead Plaintiff Deadline
16 July 2024
Judge
Hon. Steven D. Grimberg