Rentokil(US:RTO) Prnewswire·2025-01-23 19:34Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Rentokil Initial plc due to alleged violations of federal securities laws, particularly concerning misleading statements about the integration of Terminix and its impact on the company's performance [2][4]. Group 1: Allegations Against Rentokil - The complaint alleges that Rentokil and its executives made false or misleading statements regarding the integration of Terminix, which faced significant execution challenges [4]. - Specific issues cited include disruption during the early integration pilots, ongoing execution challenges, and the failure to integrate Terminix, which negatively impacted organic revenue growth in North America [4]. - The allegations suggest that Rentokil's positive statements about its business and prospects lacked a reasonable basis and were materially false [4]. Group 2: Financial Performance and Market Reaction - On April 18, 2024, Rentokil reported only 1.5% organic revenue growth in North America for Q1 2024, below the guidance of 2%, leading to a 9% drop in the stock price [5]. - A subsequent trading update on September 11, 2024, revealed an expected 1% organic revenue growth for the second half of 2024, significantly lower than prior guidance, resulting in a 21% decline in stock price [6]. - The CEO and CFO acknowledged execution challenges during a conference call, indicating that the integration efforts had not been successful and that the businesses remained largely separate [6].