Core Viewpoint - Robbins LLP has initiated a class action lawsuit on behalf of investors who acquired Vestis Corporation (NYSE:VSTS) securities between May 2, 2024, and May 6, 2025, due to allegations of misleading statements regarding customer growth and business performance [1][2]. Allegations - The complaint alleges that Vestis Corporation misled investors by failing to disclose its inability to execute strategic initiatives aimed at improving customer experience and onboarding, which were expected to drive new customer growth and revenue [2]. - It is claimed that these misleading statements led to investors purchasing Vestis securities at artificially inflated prices [2]. Financial Performance - On May 7, 2025, Vestis announced disappointing financial results for Q2 of fiscal 2025, withdrew its revenue and growth guidance for the full fiscal year, and provided third-quarter guidance that was significantly below market expectations [3]. - The company attributed its poor performance to "lost business in excess of new business" and "lower adds over stops," indicating a decline in volume changes with existing customers [3]. - Following this announcement, Vestis' stock price plummeted from $8.71 per share on May 6, 2025, to $5.44 per share on May 7, 2025, marking a decline of approximately 37.54% in just one day [3]. Class Action Participation - Shareholders interested in participating in the class action against Vestis Corporation must file a motion for lead plaintiff by August 8, 2025 [4]. - The lead plaintiff will represent other class members in directing the litigation, but participation is not required to be eligible for recovery [4].
VSTS Investor Notice: Robbins LLP Reminds Investors of the Class Action Lawsuit Against Vestis Corporation