Faruqi & Faruqi Reminds Rentokil Investors of Pending Class Action Lawsuit with Lead Plaintiff’s Deadline of January 27, 2025.
Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Have Suffered Losses Over $75,000 From Rentokil To Contact Him Directly To Discuss Their Options.
If you have lost more than $75,000 Rentokil between December 1, 2023 and September 10, 2024 and would like to discuss your legal rights, call a Faruqi & Faruqi partner Josh Wilson directly of 877-247-4292 or 212-983-9330 (Ext. 1310).
[You may also click here for additional information]
New York, New York–(Newsfile Corp. – December 22, 2024) – Faruqi & Faruqi, LLP, a leading national law firm, is investigating potential claims The first Rentokil (LON:) plc (“Rentokil” or the “Company”) (NYSE: RTO) and reminds investors of January 27, 2025 deadline seeking the role of lead plaintiff in a federal securities class action filed against the Company.
Faruqi & Faruqi is a leading national security law firm with offices in New York, Pennsylvania, California and Georgia. The company has returned hundreds of millions of dollars to investors since it was founded in 1995. Check out www.faruqilaw.com.
As described below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or by failing to disclose that: (1) Rentokil met the standards of disruption in the early drivers of the Terminix merger; (2) Rentokil faced significant, ongoing, suicidal challenges in integrating Terminix; (3) disruption and operational challenges that threaten Rentokil’s integration plan for Terminix; (4) Rentokil and Terminix were still two separate entities that had not yet been merged; (5) Rentokil’s failure to integrate Terminix has had a material adverse effect on the Company’s business and operations, particularly revenue growth in North America; and (6) as a result of the foregoing, the defendants’ positive statements about the Company’s business, operations, and prospects were false and misleading and/or had no reasonable basis at all relevant times.
The truth was first revealed before the market opened on April 18, 2024, when Rentokil issued a press release announcing its financial results for the first quarter of 2024, reporting that revenue growth in North America increased by only 1.5% year-over-year – more than a 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 an accompanying earnings call held later that day Chief Executive Officer (“CEO”) Andrew M. Ransom assured investors that “our integration plan is on track[,]” while Chief Financial Officer (“CFO”) Stuart M. Ingall-Tombs continued to say, “we are very confident about our revenue guidance now.” On this news, the price of Rentokil ADSs fell more than 9%, from the closing price of $28.25 i -per ADS on April 17, 2024, to the closing price of $25.61 per ADS on April 18, 2024.
The truth was revealed on September 11, 2024 when, before the opening of the markets, Rentokil provided an unscheduled “Commercial Update”, announcing that the Company now expects organic revenue growth of only 1% in North America in the second half of 2024 – below the previous guidance of the company. In a related press release, Rentokil disclosed, “[T]his trading performance in July and August was lower than expected. There has also been some disruption to organic growth since the branch merger.” During a related conference call with analysts held later that same day, CFO Ingall-Tombs revealed that, after nearly two years of consolidation efforts, “I think what we have. it’s because we have 2 different, mostly high-level businesses that haven’t been merged yet. . . .” During the same conference call, CEO Ransom admitted, “This is a reflection of the challenges of execution, execution — the need to improve our execution. It’s not a market thing. As we can see at the moment, if more information appears suggest [sic] reserve the right to change that answer, but I don’t think it’s the market[,] I think this is for us.” On 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 September 11, 2024. .
A court-appointed lead plaintiff is an investor with a significant financial interest in the relief sought by the class that is adequate and common to class members directing and presiding over litigation on behalf of the class action. Any member of the forbearance class may move the Court to act as lead plaintiff through counsel of their own choosing, or may choose to do nothing and remain a non-class member. Your ability to participate in any recovery is not affected by the decision to serve as the lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information about Rentokil’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
Follow us for updates on LinkedIn, X, or Facebook (NASDAQ:).
Advocate advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Past results do not guarantee or predict the same result with respect to any future issue. We welcome the opportunity to discuss your specific issue. All communications will be treated confidentially.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/234400
