Securities class action litigation has been filed on behalf of investors in the common stock of ServiceMaster Global Holdings, Inc. (“ServiceMaster” or the “Company”) (NYSE: SERV). If you purchased or otherwise acquired the common stock of ServiceMaster between February 26, 2019 and November 4, 2019, inclusive (the “Class Period”), you may move the court for appointment as lead plaintiff by no later than June 9, 2020.
You may retain Lieff Cabraser Heimann & Bernstein, LLP, or other attorneys, as your counsel in the action. Recognized by the National Law Journal as one of the nation’s top plaintiffs’ law firms, Lieff Cabraser is committed to safeguarding the rights of investors and upholding the integrity of the market. We have significant experience and a successful track record of representing institutional and individual investors in securities and financial fraud litigation.
ServiceMaster investors who wish to learn more about the litigation and how to seek appointment as lead plaintiff should use the form below or contact Sharon M. Lee of Lieff Cabraser toll-free at 1-800-541-7358.
Background on the ServiceMaster Securities Class Litigation
ServiceMaster, headquartered in Tennessee, is a leading provider of pest control services. ServiceMaster’s largest and most profitable business segment is Terminix, a termite and pest control business that primarily operates in the United States. Since at least as early as 2017, ServiceMaster began experiencing an increased number of legal claims from its customers in Mobile, Alabama as a result of increased activity of Formosan termites, a particularly invasive species.
The action alleges that, throughout the Class Period, ServiceMaster failed to disclose the growing risks arising from Formosan termite activity in Alabama and that the growth in related legal claims had prompted the Company to take mitigating actions throughout 2018. Instead, ServiceMaster made false and misleadingly statements to investors suggesting that the Company had not identified material changes relating to termite damage claims when, in reality, ServiceMaster had known it was incurring, and would continue to incur, significantly increased legal costs from termite damages claims in Alabama.
On October 22, 2019, ServiceMaster announced disappointing preliminary revenue and earnings results for the third quarter of 2019 and revised its financial guidance for the quarter downward. The Company’s press release attributed these negative developments to “termite damage claims arising primarily from Formosan termite activity” in Alabama, and acknowledged that ServiceMaster had known of the problem “starting in 2018.” Additionally, the Company announced the sudden departure of the president of Terminix’s residential termite control business. On this news, the price of ServiceMaster common stock fell $11.44 per share, or 20.38%, from the closing price of $56.14 on October 21, 2019, to close at $44.70 on October 22, 2019, on heavy trading volume.
Before markets opened on November 5, 2019, ServiceMaster announced that it had been impacted by “legacy risks,” including “termite damage claims.” During an earnings call with analysts and investors held that same day, the Company disclosed that termite litigation had nearly doubled historical legal costs relating to its termite business and “we expect additional cost increases in 2020 before our mitigating actions fully take effect and we begin to gradually return them to historical norms.” On this news, the price of ServiceMaster common stock fell $1.42 per share, or 3.5%, from the closing price of $40.57 November 4, 2019, to close at $39.15 on November 5, 2019, on elevated trading volume.
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Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, and Nashville, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility.
The National Law Journal has recognized Lieff Cabraser as one of the nation’s top plaintiffs’ law firms for fourteen years. In compiling the list, the National Law Journal examines recent verdicts and settlements and looked for firms “representing the best qualities of the plaintiffs’ bar and that demonstrated unusual dedication and creativity.” Law360 has selected Lieff Cabraser as one of the Top 50 law firms nationwide for litigation, highlighting our firm’s “laser focus” and noting that our firm routinely finds itself “facing off against some of the largest and strongest defense law firms in the world.” Benchmark Litigation has named Lieff Cabraser one of the “Top 10 Plaintiffs’ Firms in America.”