Vestis (US:VSTS) GlobeNewswire News Roomยท2025-06-23 17:00Core Viewpoint - The article discusses a class action lawsuit against Vestis Corporation due to significant stock price decline following disappointing financial results and misleading statements made by the company regarding its growth and revenue guidance [2][3]. Group 1: Financial Performance - On May 7, 2025, Vestis reported its second quarter fiscal 2025 financial results, revising its growth and revenue guidance for 2025, which fell significantly below market expectations [2]. - The company attributed the poor results to "lost business in excess of new business" and "lower adds over stops," indicating a decline in revenue from existing customers [2]. Group 2: Stock Price Impact - Following the announcement of the disappointing financial results, Vestis's stock price dropped by $3.27, or 37.5%, closing at $5.44 per share on May 7, 2025, resulting in losses for investors [2]. Group 3: Lawsuit Details - The class action lawsuit alleges that during the Class Period, Vestis made materially false and misleading statements and failed to disclose adverse facts about its business and operations [3]. - Specifically, the lawsuit claims that the company was not equipped to achieve its growth guidance, leading to a significant revenue decline from existing customers, which rendered the positive statements misleading [3]. Group 4: Legal Action - Investors who purchased Vestis securities during the Class Period have until August 8, 2025, to file a lead plaintiff motion in the class action lawsuit [1][4].