Core Viewpoint - A class action lawsuit has been filed against Vestis Corporation for allegedly providing misleading statements about its business growth and performance during the class period from May 2, 2024, to May 6, 2025 [1][3]. Company Performance - On May 7, 2025, Vestis announced disappointing financial results for Q2 of fiscal 2025, withdrawing its revenue and growth guidance for the full fiscal year 2025 [4]. - The company reported a significant decline in stock price, dropping from $8.71 per share on May 6, 2025, to $5.44 per share on May 7, 2025, representing a decrease of approximately 37.54% in one day [4]. Allegations - The lawsuit claims that Vestis made overwhelmingly positive statements while concealing material adverse facts regarding its ability to grow the business and execute strategic initiatives [3]. - The company attributed its poor performance to "lost business in excess of new business" and "lower adds over stops," indicating challenges in customer retention and revenue growth [4].
VESTIS ALERT: Bragar Eagel & Squire, P.C. Announces that a Class Action Lawsuit Has Been Filed Against Vestis Corporation and Encourages Investors to Contact the Firm