Lawsuit filed for Investors who lost money with shares of Vestis Corporation (NYSE: VSTS)

An investor, who purchased shares of Vestis Corporation (NYSE: VSTS), filed a lawsuit over alleged violations of Federal Securities Laws by Vestis Corporation in connection with certain allegedly false and misleading statements.

Investors who purchased shares of Vestis Corporation (NYSE: VSTS) have certain options and for certain investors are short and strict deadlines running. Deadline: July 16, 2024. NYSE: VSTS investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

Roswell, GA based Vestis Corporation provides uniform rentals and workplace supplies in the United States and Canada. The Company was created as the result of its September 30, 2023 spinoff from food services and facilities management provider Aramark. Vestis began trading on the New York Stock Exchange on October 2, 2023. under the ticker symbol "VSTS." Before the spinoff, soon-to-be executives of Vestis claimed that "investments are in place" to deliver "5% to 7% topline growth" on compound annual growth rate (CAGR). They also assured investors that the Company's sales force had "reached their stride" and were "now hitting productivity levels that we desire from them." Vestis Corporation reported that its Total Revenue rose from over $2.68 billion for the 12 months period that ended on September 30, 2022, to over $2.82 billion for the 12 months period that ended on September 30, 2023, and that its Net rose over those respective time periods from $141.67 million to $213.15 million.

On May 2, 2024, Vestis Corporation announced its financial results for the second quarter of fiscal year 2024, ended March 29, 2024. Specifically, the Company disclosed that it had generated revenue of $705 million, a 0.9% increase over the same quarter in the prior year, and also had downwardly revised its revenue outlook for fiscal year 2024 to a range of negative 1% to 0%. During the corresponding earnings call with analysts that day, Chief Executive Officer ("CEO") Kimberly Scott revealed the "challenges" facing the Company related "to sales productivity and deliberate moderated pricing actions," the latter of which CEO Scott explained were necessary to "improve[] retention" and because "service gaps" had "driven price sensitivity." During the same call, analysts pointed out that Vestis had pivoted from a recent announcement of a price increase to a price decrease and questioned Defendants about the reversal in pricing capabilities.

Shares of Vestis Corporation (NYSE: VSTS) to $8.92 per share on May 2, 2024.

The plaintiff claims that between October 2, 2023 and May 1, 2024, the Defendants made materially false and misleading statements and 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 above, Defendants' statements about Vestis's business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.

Those who purchased shares of Vestis Corporation (NYSE: VSTS) have certain options and should contact the Shareholders Foundation.

Contact:
Michael Daniels
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities lawsuits, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

This release was published on openPR.