PR Newswire
NEW YORK, Dec. 3, 2024
NEW YORK, Dec. 3, 2024 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against Rentokil Initial plc ("Rentokil" or the "Company") (NYSE: RTO). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
The class action concerns whether Rentokil and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
You have until January 27, 2025, to ask the Court to appoint you as Lead Plaintiff for the class if you are a shareholder who purchased or otherwise acquired Rentokil securities during the Class Period. A copy of the Complaint can be obtained at www.pomerantzlaw.com.
[Click here for information about joining the class action]
On October 12, 2022, Rentokil announced its completed acquisition of rival pest control company Terminix Global Holdings, Inc. ("Terminix") in a transaction valued at $6.7 billion.
On April 18, 2024, Rentokil announced its financial results for the first quarter of 2024, disclosing that organic revenue growth in North America increased by only 1.5% year-over-year, below prior guidance of 2% for the first quarter and 2% to 4% for the full year. During a subsequent conference call to discuss these results, analysts expressed concerns that Rentokil's integration of Terminix may be negatively impacting organic growth in North America, despite assertions by the Company's Chief Executive Officer to the contrary.
On this news, Rentokil's American depository share ("ADS") price fell $2.64 per ADS, or more than 9%, to close at $25.61 per ADS on April 18, 2024.
Then, on September 11, 2024, Rentokil issued an unscheduled "Trading Update," disclosing that the Company now anticipated only 1% organic revenue growth in North America for the second half of 2024, well below the Company's prior guidance, citing "some modest disruption to organic growth from branch integration." During a related conference call held later that day with analysts, Rentokil's management indicated that execution challenges in connection with the Terminix acquisition were negatively impacting the Company's results. UBS analysts subsequently noted that "Rentokil is facing challenges in restructuring its [North American] Pest network post-Terminix while trying to reaccelerate organic growth."
On this news, Rentokil's ADS price fell $6.65 per ADS, or more than 21%, to close at $24.95 per ADS on September 11, 2024.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 85 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980
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SOURCE Pomerantz LLP
