Vestis (US:VSTS) GlobeNewswire News Room·2025-07-02 20:03Core Viewpoint - The Gross Law Firm has issued a notice to shareholders of Vestis Corporation regarding a class action lawsuit due to allegations of misleading statements and failure to meet growth expectations, leading to a significant drop in stock price [1][3]. Summary by Relevant Sections Allegations - The complaint alleges that Vestis Corporation provided overly positive statements while concealing material adverse facts about its business growth capabilities, particularly its inability to execute strategic initiatives aimed at improving customer experience and retention [3]. 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. The company cited "lost business in excess of new business" and "lower adds over stops" as reasons for its poor performance [3]. Stock Price Impact - Following the announcement of poor financial results, 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 Details - Shareholders who purchased shares of Vestis during the class period from May 2, 2024, to May 6, 2025, are encouraged to register for the class action lawsuit, with a deadline for lead plaintiff appointment set for August 8, 2025 [4]. Law Firm's Commitment - The Gross Law Firm aims to protect investors' rights and seeks recovery for those who suffered losses due to misleading statements or omissions by companies, emphasizing the importance of responsible business practices [5].