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 ServiceMaster Global Holdings, Inc. ("ServiceMaster" or the Company") (NYSE: SERV) securities between February 26, 2019 and November 4, 2019, inclusive (the “Class Period”). ServiceMaster investors have until June 9, 2020 to file a lead plaintiff motion.
Investors suffering losses on their ServiceMaster 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 firstname.lastname@example.org.
On October 22, 2019, ServiceMaster announced preliminary third quarter 2019 financial results, reporting net income of $25 million compared to net income in the prior year period of $71 million, and attributed the results to "termite damage claims arising primarily from Formosan termite activity." The Company also announced the sudden departure of Matthew J. Stevenson from his role as President of Terminix Residential.
On this news, the Company's share price fell $11.44, or 20%, to close at $44.70 per share on October 22, 2019, thereby injuring investors.
Then, on November 5, 2019, ServiceMaster announced its third quarter 2019 financial results in a press release that revealed the Company had been impacted by certain "legacy risks," including "termite damage claims."
On this news, the Company's share price fell $1.42, or nearly 4%, to close at $39.15 per share on November 5, 2019, thereby injuring investors further.
The complaint alleges that defendants made false and/or misleading statements and/or failed to disclose: (1) that ServiceMaster had failed to properly inspect and treat for Formosan activity; (2) as a result thereof, the Company was and continued to experience a material adverse trend of costly litigation from injured customers which was not disclosed to investors; (3) that in an unsuccessful attempt to mitigate this trend, Defendants had been taking remedial measures since at least 2018, including drastically raising prices for termite treatments in Mobile, Alabama to deter contract renewals; and (4) as a result of the foregoing, ServiceMaster’s financial results were reasonably likely to be impacted, and would continue to impact the Company into 2020.
If you purchased ServiceMaster 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 email@example.com, or visit our website at www.howardsmithlaw.com.
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