Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Over $75,000 in Rentokil to Contact Him Directly to Discuss Their Options.
If you have a loss of more than $75,000 Rentokil between December 1, 2023 and September 10, 2024 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson live at the 877-247-4292 or 212-983-9330 (Ext. 1310).
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New York, New York– (Newsfile Corp. – December 22, 2024) – Faruqi & Faruqi, LLP, a national securities law firm, is investigating potential claims against. Rentokil Initial (LON:) plc (“Rentokil” or the “Company”) (NYSE: RTO) and reminds investors of January 27, 2025 deadline seeking the role of lead plaintiff in a securities class action filed against the Company.
Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The company has raised hundreds of millions of dollars from investors since its founding in 1995. See 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 received levels of interference from the initial drivers of the Terminix merger; (2) Rentokil experienced significant, ongoing, suicidal challenges with the Terminix merger; (3) disruptions and implementation challenges that jeopardize Rentokil's integration plan for Terminix; (4) Rentokil and Terminix were still two separate businesses that had not yet been merged; (5) Rentokil's failure to integrate Terminix adversely 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 regarding the Company's business, operations, and prospects were materially false and misleading and/or unsubstantiated 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 organic 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 ago. During an earnings call later that day, Chief Executive Officer (“CEO”) Andrew M. Ransom assured investors that “our merger process is on track (,)” while Chief Financial Officer (“CFO”) Stuart M. Ingall-Tombs maintained, “we are confident in our revenue guidance now.” On this news, the price of Rentokil 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 , 2024.
The truth was revealed on September 11, 2024 when, before the markets opened, Rentokil provided an unscheduled “Trade” update, announcing that the Company now expects revenue growth of only 1% in North America in the second half of 2024 – well below the Company's previous guidance. In a related press release, Rentokil disclosed, “(T)his trading activity in July and August was lower than expected. There was also a modest disruption to organic growth from the branch merger.” During a conference call with analysts held later that same day, CFO Ingall-Tombs revealed that, after nearly two years of merger efforts, “I think what we have is still there because we have 2 separate businesses, mostly existing. The working end has not been merged. During the conference call the same, CEO Ransom agreed, “This is a reflection of the challenges of execution, implementation — the need to improve our implementation. It's not a market thing. As we can see at the moment, if additional information comes to light it suggests. (sic) reserve the right to change that answer, but I don't think it's the market (,) I think this is on us.” On this news, the price of Rentokil ADSs fell more than 21%, from the closing price of $31.60 per ADS in 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 substantial financial interest in the relief sought by a sufficient and common class of class members who administers and oversees the lawsuit on behalf of the putative class. Any privileged class member may move the Court to act as lead plaintiff through counsel of his or her own choosing, or may choose to remain inactive and remain a non-class member. Your ability to share in any recovery is not affected by the decision to act 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.
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To view the source of this document, please visit https://www.newsfilecorp.com/release/234400