Vestis Corporation Securities Class Action Litigation

Introduction

Securities class action litigation has been filed on behalf of investors who purchased common stock of Vestis Corporation (“Vestis” or the “Company”) (NYSE: VSTS) between October 2, 2023 and May 1, 2024, inclusive (the “Class Period”).

If you purchased Vestis common stock during the Class, you may move the Court for appointment as lead plaintiff by no later than July 16, 2024.

A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the actions will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.

Vestis investors who wish to learn more about the litigation and how to seek appointment as lead plaintiff should complete the form below, text or email investorinfo@lchb.com, or call Lieff Cabraser partner Sharon M. Lee  at 1-800-541-7358.

Background on the Vestis Securities Class Litigation

Vestis is a uniform services provider that provides rental uniforms and workplace supplies to businesses throughout the United States and Canada.  The Company used to operate as the Uniform Services division of Aramark, a food and facilities services provider, until it was spun off as an independent publicly traded company in September 2023.

The action alleges that during the Class Period, Vestis misrepresented and failed to disclose materially adverse facts regarding the Company’s operations, including that: (i) Aramark had not invested sufficiently in its Uniform Services division prior to the spinoff of Vestis, and (ii) as a result, the Company had experienced services gaps and was not in a position to meet the growth projections that defendants touted.

On May 2, 2024, before the market closed, Vestis released disappointing financial results for the second quarter of fiscal year 2024.  The Company lowered its outlook for fiscal year 2024, reporting projected revenue growth of negative 1% to 0%.  During the Company’s earnings conference call with analysts and investors held later that day, the Company’s Chief Executive Officer, defendant Kimberly Scott, said that “service gaps have driven price sensitivity.”  Analysts were surprised by the Company’s announcements, including a JP Morgan analyst who remarked, “[a]s you had articulated, your plan had been just a couple of months ago for a targeted area price increase, and then you pivoted to a price decrease.”  On this news, Vestis’s common stock price fell $8.31 per share, or 45%, from its closing price of $18.47 per share on May 1, 2024, to close at $10.16 per share on May 2, 2024, on unusually heavy trading volume.

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    Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, Nashville, and Munich, is an internationally-recognized law firm committed to advancing the rights of investors and promoting corporate responsibility. Recognized as a “Plaintiffs’ Powerhouse” by Law360, Lieff Cabraser has litigated some of the most important civil cases in the United States, and has assisted clients in recovering over $129 billion in verdicts and settlements. 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.” In 2021, The American Lawyer named our firm its “Boutique Litigation Firm of the Year.” Benchmark Litigation has named Lieff Cabraser one of the “Top 10 Plaintiffs’ Firms in America,” and listed us as its “2020 California Plaintiff Firm of the Year.” Lieff Cabraser is committed to ensuring access to justice for all.