Saxena White P.A. Files Securities Fraud Class Action Against Rentokil Initial plc and Certain of Its Executives

Lawsuit Overview - Saxena White P A has filed a securities fraud class action lawsuit against Rentokil Initial plc and certain executive officers under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and SEC Rule 10b-5 [1] - The lawsuit is on behalf of all persons and entities that purchased Rentokil American Depositary Shares (ADSs) between December 1 2023 and September 10 2024 [1] Company Background - Rentokil provides pest control hygiene and wellness services worldwide with three main business lines: Pest Control Hygiene & Wellbeing and France Workwear [2] - Rentokil is the largest global pest control services provider with North America Pest Control accounting for more than half of the Company's annual revenue [2] - Rentokil completed the acquisition of Terminix Global Holdings Inc in a transaction valued at $6 7 billion including$1 34 billion in cash and over 129 million new Rentokil ADSs [2] Allegations - Defendants made materially false and misleading statements and failed to disclose material adverse facts about the Company's business operations and prospects during the Class Period [3] - Rentokil experienced significant ongoing self-inflicted execution challenges integrating Terminix which imperiled the integration plan [3] - Rentokil and Terminix were still two separate businesses that were not yet integrated negatively impacting the Company's business and operations particularly organic revenue growth in North America [3] Financial Disclosures - Rentokil reported organic revenue growth in North America increased by only 1 5% year-over-year for the first quarter of 2024 below the Company's guidance of 2% [4] - Rentokil now expects only 1% organic revenue growth in North America for the second half of 2024 well below the Company's prior guidance [5] - The trading performance in July and August was lower than anticipated with modest disruption to organic growth from branch integration [5] Market Reaction - The price of Rentokil ADSs fell over 9% from a closing price of $28 25 per ADS on April 17 2024 to a closing price of$25 61 per ADS on April 18 2024 [4] - The price of Rentokil ADSs fell over 21% from a closing price of $31 60 per ADS on September 10 2024 to a closing price of$24 95 per ADS on September 11 2024 [5]