Vestis Corporation (NYSE: VSTS)

This lawsuit is for anyone who acquired securities in Vestis Corporation (NYSE: VSTS) from October 2, 2023 through May 1, 2024.

The lawsuit alleges that the Company and certain of its executives violated federal law. Specifically, the lawsuit alleges that, throughout the time period mentioned above, the Company misled investors regarding its financial condition. More specifically, the lawsuit alleges that the Company misled investors by failing to disclose that Aramark had historically underinvested in the business that became Vestis, that Vestis therefore operated with outdated facilities and an underperforming sales force, and that, as a result Vestis’s outdated facilities and underperforming sales force led to “service gaps” that had impeded the Company’s levers of growth and had resulted in customer attrition.

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, the price of the Company’s stock dropped precipitously on unusually heavy trading volume.

The Law Offices of Howard G. Smith seeks to recover damages on behalf of class members. If you acquired securities in Vestis Corporation (NYSE: VSTS) from October 2, 2023 through May 1, 2024 you may join the lawsuit by submitting your information online, or you may call the Law Offices of Howard G. Smith and speak to Mr. Smith directly to learn how he can protect your rights.