Shamis & Gentile, P.A. Announces Investigation of Breaches of Fiduciary Duties by the Directors and Officers of Vestis Corporation -- VSTS

Core Viewpoint - Shamis & Gentile, P.A. is investigating potential breaches of fiduciary duties by directors and officers of Vestis Corporation following significant stock price declines and allegations of misleading investors [1][4]. Group 1: Company Background - Vestis Corporation was spun off from Aramark's Uniform Services business on October 2, 2023, and began trading on the New York Stock Exchange [3]. - The company reported second-quarter results on May 2, 2024, that fell below market expectations, leading to a withdrawal of its full-year guidance and a weaker outlook [3]. Group 2: Stock Performance - Following the disappointing financial disclosures, Vestis' stock price declined by approximately 45% [3]. Group 3: Legal Actions - A securities class action was filed against Vestis, alleging that the company misled investors regarding its operational readiness and overstated growth prospects [4]. - The lawsuit claims that Vestis failed to disclose issues such as inherited underinvestment, internal-control weaknesses, and service challenges that negatively impacted performance [4]. Group 4: Investigation Details - Shamis & Gentile, P.A. is assessing whether Vestis' board of directors and officers maintained adequate oversight and internal controls related to the alleged misconduct [5]. - Potential governance failures may have exposed the company to significant harm, and long-term shareholders may seek corporate governance reforms and financial restitution [5].