LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Rentokil Initial plc (“Rentokil” or the “Company”) (NYSE: RTO) American Depositary Shares (“ADSs”) between December 1, 2023 and September 10, 2024, inclusive (the “Class Period”). Rentokil investors have until January 27, 2025 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
On April 18, 2024, Rentokil released its first quarter 2024 financial results, 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. On this news, Rentokil’s stock price fell $2.64, or 9.3%, to close at $25.61 per ADS on April 18, 2024, thereby injuring investors.
Then, on September 11, 2024, Rentokil issued an unscheduled “Trading Update,” disclosing that it now expected only 1% North America organic revenue growth for the second half of 2024, explaining that “the trading performance in July and August was lower than anticipated,” and that “there has also been some modest disruption to organic growth from branch integration.” The Company further stated that the issues were “a manifestation of execution challenges.”
On this news, Rentokil’s stock price fell $6.65, or 21%, to close at $24.95 per ADS on September 11, 2024, thereby injuring investors further.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Rentokil experienced levels of disruption in the early pilots of the Terminix integration; (2) Rentokil experienced significant, ongoing, self-inflicted execution challenges integrating Terminix; (3) the disruption and execution challenges imperiled 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 impacted the Company’s business and operations, particularly organic revenue growth in North America; and (6) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
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If you purchased Rentokil securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 2121 Avenue of the Stars, Suite 800, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com.
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