Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $75,000 In Rentokil To Contact Him Directly To Discuss Their Options
If you suffered losses exceeding $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 at 877-247-4292 or 212-983-9330 (Ext. 1310).
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NEW YORK, Nov. 27, 2024 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Rentokil Initial plc (“Rentokil” or the “Company”) (NYSE: RTO) and reminds investors of the January 27, 2025 deadline to seek the role of lead plaintiff in a federal securities class action 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 complaint 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 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 of the above, 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 be revealed prior to the markets opening 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 by only 1.5% year-over-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 call held later that day Chief Executive Officer (“CEO”) Andrew M. Ransom assured investors that “our integration program is on track[,]” while Chief Financial Officer (“CFO”) Stuart M. Ingall-Tombs maintained, “we’re pretty confident about our revenue guidance now.” On this news, the price of Rentokil ADSs fell over 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 “Trading 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 prior guidance. In the related press release, Rentokil disclosed, “[T]he trading performance in July and August was lower than anticipated. There has also been some modest disruption to organic growth from branch integration.” During a related conference call with analysts held later that same day, CFO Ingall-Tombs revealed that, after nearly two years of integration efforts, “I think what we have got is still because we’ve got 2 separate businesses, which are largely at an operational front-end not integrated yet. . . .” During the same conference call, CEO Ransom admitted, “This is a manifestation of execution challenges, execution -- a need to improve our execution. It’s not a market phenomenon. As we can see at the moment, if further information comes to light suggest [sic] reserve the right to change that answer, but I don’t think it’s market[,] I think this is on us.” On this news, the price of Rentokil ADSs fell over 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.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Rentokil’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
To learn more about the Rentokil Initial plc class action, go to www.faruqilaw.com/RTO or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
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