BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Cintas Corp. (“Cintas” or the “Company”) (NASDAQ: CTAS) securities between March 6, 2017 and November 13, 2019, inclusive (the “Class Period”). Cintas investors have until February 10, 2020 to file a lead plaintiff motion.
Investors suffering losses on their Cintas investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.
On November 13, 2019, Spruce Point Capital Management (“Spruce Point”) issued a report alleging, based on information from FOIA requests, that “Cintas’ Fire Protection Services was charged with fraud and is causing a public safety hazard by having workers conduct fire and safety inspections without proper licenses or permits, and falsifying inspections.” Spruce Point also alleged that management may have misreported revenue and expenses for G&K Services, Inc., which the Company had acquired in 2017 for $2.1 billion.
On this news, Cintas' stock price fell $3.61 per share to close at $255.24 per share on November 13, 2019, thereby injuring investors.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that Cintas never tracked legacy margins following the G&K acquisition; (2) that the Company has systematically provided guidance with which it would outperform (a "Beat and Raise" scheme); (3) that undisclosed to the investing public, the Company has breached the law multiple times; (4) that as a result of publicly known and undisclosed breaches of law, the Company's Credit Agreement may be jeopardized; and (5) that, as a result of the foregoing, the Company's financial statements were materially false and misleading at all relevant times.
If you purchased Cintas securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.
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