Glancy Prongay & Murray LLP, a Leading Securities Fraud Law Firm, Announces the Filing of a Securities Class Action on Behalf of Vestis Corporation (VSTS) Investors

LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay & Murray LLP (“GPM”), a leading national shareholder rights law firm, announces that a class action lawsuit has been filed on behalf of investors who purchased or otherwise acquired Vestis Corporation (“Vestis” or the “Company”) (NYSE: VSTS) common stock between October 2, 2023 and May 1, 2024, inclusive (the “Class Period”). Vestis investors have until July 16, 2024 to file a lead plaintiff motion.

If you suffered a loss on your Vestis investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at www.glancylaw.com/cases/Vestis-Corporation/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at [e-mail] to learn more about your rights.

On May 2, 2024, Vestis released its second quarter FY2024 financial results, falling below expectations and revising its 2024 outlook, reporting that it “now expect[ed] to deliver fiscal 2024 revenue growth in the range of [negative] (1)% to 0%.” The Company blamed “challenges . . . related to sales productivity and deliberate moderated pricing actions” for the disappointing results.

On this news, Vestis’s stock price fell $8.31, or 45%, to close at $10.16 per share on May 2, 2024, thereby injuring investors.

The complaint alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose: (1) Aramark had historically underinvested in the business that became Vestis; (2) Vestis operated with outdated facilities and an underperforming sales force; (3) Vestis’s outdated facilities and underperforming sales force led to “service gaps” that had impeded the Company’s levers of growth and had resulted in customer attrition; and (4) as a result of the foregoing, Defendants’ public statements were materially false and misleading at all relevant times.

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If you purchased or otherwise acquired Vestis common stock during the Class Period, you may move the Court no later than July 16, 2024 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to [e-mail], or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.

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