Lawsuit filed for Investors in shares of Rentokil Initial plc (NYSE: RTO) over alleged Securities Laws Violations

An investor, who purchased shares of Rentokil Initial plc (NYSE: RTO), filed a lawsuit in the U.S. over alleged violations of Federal Securities Laws by Rentokil Initial plc in connection with certain allegedly false and misleading statements made between December 1, 2023 and September 10, 2024.

Investors who purchased shares of Rentokil Initial plc (NYSE: RTO), have certain options and for certain investors are short and strict deadlines running. Deadline: January 27, 2025. NYSE: RTO investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

United Kingdom based Rentokil Initial plc, together with its subsidiaries, provides route-based services in North America, the United Kingdom, rest of Europe, Asia, the Pacific, and internationally. The Company's three main business lines are Pest Control, Hygiene & Wellbeing, and France Workwear. Rentokil is the largest global pest control services provider. North America Pest Control accounts for more than half of the Company's annual revenue. Rentokil's Level II sponsored ADSs are listed and traded on the New York Stock Exchange (NYSE) under the ticker symbol "RTO."
Rentokil Initial plc reported that its annual Total Revenue rose from over $3.71 billion in 2022 to over $5.37 billion in 2023, and that its Net Income increased from $232 million in 2022 to $381 million in 2023.

On October 12, 2022, Rentokil Initial plc announced that it had completed its acquisition of Memphis, Tennessee-based Terminix Global Holdings, Inc. ("Terminix") in a transaction valued at $6.7 billion, including $1.34 billion in cash and over 129 million new Rentokil ADSs (the "Terminix Acquisition"). As a result of the Terminix Acquisition, the Terminix business became part of Rentokil's pest control business line, making Rentokil the largest pest control services provider in North America. After the Terminix Acquisition closed, Rentokil claimed it was well positioned to successfully integrate Terminix into Rentokil's pest control business. Throughout the Class Period, Defendants touted Rentokil's progress and success integrating Terminix and the benefits of the Terminix Acquisition.

On April 18, 2024, Rentokil Initial plc announced its financial results for the first quarter of 2024, reporting that organic revenue growth in North America had increased by only 1.5% year-over-year-below the Company's guidance of 2% for the first quarter and 2% to 4% for the full year, issued just six weeks earlier. During the corresponding earnings call held later that day Chief Executive Officer ("CEO") Andrew M. Ransom assured investors that "our integration program is on track[,]" while Chief Financial Officer ("CFO") Stuart M. Ingall-Tombs maintained, "we're pretty confident about our revenue guidance now."

Then on September 11, 2024 Rentokil Initial plc provided an unscheduled "Trading Update," announcing that the Company now expected only 1% organic revenue growth in North America for the second half of 2024-well below the Company's prior guidance. In the related press release, Rentokil disclosed, "[T]he trading performance in July and August was lower than anticipated. There has also been some modest disruption to organic growth from branch integration." During a related conference call with analysts held later that same day, CFO Ingall-Tombs revealed that, after nearly two years of integration efforts, "I think what we have got is still because we've got 2 separate businesses, which are largely at an operational front-end not integrated yet. . . ." During the same conference call, CEO Ransom admitted, "This is a manifestation of execution challenges, execution - a need to improve our execution. It's not a market phenomenon. As we can see at the moment, if further information comes to light suggest [sic] reserve the right to change that answer, but I don't think it's market[,] I think this is on us."

Shares of Rentokil Initial plc (NYSE: RTO) declined from $34.07 per share on August 26, 2024, to as low as $22.40 per share on October 16, 2024.

The plaintiff claims that between December 1, 2023 and September 10, 2024, the Defendants made materially false and misleading statements and failed to disclose material adverse facts about the Company's business, operations, and prospects, including that Rentokil experienced levels of disruption in the early pilots of the Terminix integration, that Rentokil experienced significant, ongoing, self-inflicted execution challenges integrating Terminix, that the disruption and execution challenges imperiled Rentokil's integration plan for Terminix, that Rentokil and Terminix were still two separate businesses that were not yet integrated, that Rentokil's failure to integrate Terminix negatively impacted the Company's business and operations, particularly organic revenue growth in North America, and that as a result of the above, Defendants' positive statements about the Company'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 Rentokil Initial plc (NYSE: RTO) 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.