Vestis Corporation (VSTS) Underinvestment in Business Case

N.D. Georgia

Court

1:24-cv-02175-SDG

Case number

10/02/2023

Class period Start

05/01/2024

Class period End

07/16/2024

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Vestis operated with outdated facilities and an underperforming sales force; and  
outdated facilities and underperforming sales force slowed Vestis’  growth and led to customer attrition.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 Appointed

Alleged Offence

Misleading Statements,

Failure to Disclose,

Omissions

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Shock Event Date

05/02/2024

Filing date

05/17/2024

Lead Plaintiff Deadline

07/16/2024

Judge

Hon. Steven D. Grimberg

Vestis Corporation (VSTS) Underinvestment in Business Case

Collecting participants…