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Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson encourages investors who suffered losses greater than $75,000 on Rentokil to contact him directly to discuss their options
If you suffered losses greater than $75,000 in Rentokil between December 1, 2023 and September 10, 2024 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly in 877-247-4292 either 212-983-9330 (extension 1310).
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New York, New York–(Newsfile Corp. – December 15, 2024) – Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Rentokil Initial (LON:) plc (“Rentokil” or the “Company”) (NYSE: RTO) and reminds investors of the Deadline of January 27, 2025 to seek the role of lead plaintiff in a federal securities class action lawsuit that has been filed against the Company.
Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.
As detailed below, the lawsuit alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) Rentokil experienced levels of disruption in early pilot testing from the integration of Terminix; (2) Rentokil experienced significant, ongoing and self-inflicted execution challenges in integrating Terminix; (3) disruption and execution challenges jeopardized Rentokil’s integration plan for Terminix; (4) Rentokil and Terminix were still two separate businesses that were not yet integrated; (5) Rentokil’s failure to integrate Terminix negatively affected the Company’s business and operations, particularly organic revenue growth in North America; and (6) as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
The truth began to reveal itself before markets opened on April 18, 2024, when Rentokil issued a press release announcing its financial results for the first quarter of 2024, reporting that organic revenue growth in North America had increased only 1.5% year-on-year. year below the Company’s guidance of 2% for the first quarter and 2% to 4% for the full year, issued just six weeks earlier. During the corresponding earnings conference call held earlier in the day, Chief Executive Officer (“CEO”) Andrew M. Ransom assured investors that “our integration program is on track(,),” while CFO (“CFO”) Stuart M. Ingall-Tombs “We are now fairly confident in our revenue guidance.” On this news, the price of Rentokil’s ADSs fell more than 9%, from a closing price of $28.25 per ADS on April 17, 2024, to a closing price of $25.61 per ADS on April 18 of 2024.
The truth was revealed on September 11, 2024 when, before markets opened, Rentokil provided an unscheduled “Business Update”, announcing that the Company now expected only 1% organic revenue growth in North America. for the second half of 2024, well below the company’s previous guidance. In the related press release, Rentokil revealed: “Business performance in July and August was lower than expected. There has also been a modest disruption to organic growth due to branch integration.” During a related conference call with analysts later in the day, CFO Ingall-Tombs revealed that after nearly two years of integration efforts, “I think what we still have is because we have two separate businesses, which they are largely in an operational interface not yet integrated. During the same conference call, CEO Ransom admitted: “This is a manifestation of execution challenges, execution, a need to improve our execution. It is not a market phenomenon. As we can see at this time, if more information comes to light, (sic) we reserve the right to change that answer, but I don’t think it’s a market issue (,) I think this is up to us.” In response to this news , the price of Rentokil ADSs fell more than 21%, from a closing price of $31.60 per ADS on September 10, 2024, to a closing price of $24.95 per ADS on the 11th September 2024.
The court-appointed lead plaintiff is the investor with the greatest financial interest in the relief sought by the class, which is appropriate and typical of class members directing and overseeing the litigation on behalf of the putative class. Any member of the putative class may ask the Court to serve as lead plaintiff through counsel of his or her choice, or may choose to do nothing and remain an absent class member. Your ability to participate in any recovery is not affected by the decision of whether or not to serve as lead plaintiff.
Faruqi & Faruqi, LLP also encourages anyone with information about Rentokil’s conduct to contact the company, including whistleblowers, former employees, shareholders and others.
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Lawyer advertising. The law firm responsible for this announcement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Past results do not guarantee or predict a similar outcome with respect to any future matter. We appreciate the opportunity to discuss your particular case. All communications will be treated confidentially.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/233774
