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Faruki & Faruki, LLP securities litigation partner James (Josh) Wilson encourages investors who have suffered losses over $75,000 in Rentokil to contact him directly to discuss their options
If you have suffered losses that exceed $75,000 Rentokil between December 1, 2023 and September 10, 2024 and want to discuss your legal rights, call a Faruki & Faruki partner Josh Wilson direct at 877-247-4292 or 212-983-9330 (ext. 1310).
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New York, NY–(Newsfile Corp. – Dec 15, 2024) – Faruki & Faruki, LLP, a leading national securities law firm, is investigating potential claims against Rentokil Initial (LON:) plc (“Rentokil” or the “Company”) (NOT: RTO) and reminds investors of The deadline is January 27, 2025 to seek the role of lead prosecutor in a federal securities lawsuit filed against the Company.
Faruki & Faruki is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has returned hundreds of millions of dollars for investors since its founding in 1995. See www.farukilav.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 Terminik integration pilots; (2) Rentokil experienced significant, self-inflicted ongoing performance challenges integrating Terminik; (3) disruption and execution challenges jeopardized Rentokil’s integration plan for Terminik; (4) Rentokil and Terminik were still two separate companies that had not yet been integrated; (5) Rentokil’s failure to integrate Terminik adversely affected the Company’s business and operations, particularly organic 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 materially false and misleading and/or lacked a reasonable basis at all relevant times.
The truth began to emerge 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 was up just 1 .5% per year. more than a year below the company’s plan of 2% for the first quarter and 2% to 4% for the full year, announced 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 “now we’re pretty confident in our revenue guidance.” On this news, the Rentokil ADS price fell by 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 expects only 1% organic revenue growth in North America for the second half of 2024 – well below the previous company guidance. In a related press release, Rentokil revealed: “(T)reating performance in July and August was lower than expected. There was also a modest disruption in organic growth due to branch integration.” On a related conference call with analysts later that day, CFO Ingall-Tombs revealed that, after nearly two years of integration efforts, “I think what we have is still because we have 2 separate businesses, which are mostly in the operational front end. the end is still not integrated. During the same conference call, CEO Ransom acknowledged, “This is a manifestation of the execution challenge, the execution — the need to improve our execution. It is not a market phenomenon. As we can see at the moment, if further information comes to light suggest (sic) we reserve the right to change that answer, but I don’t think it’s the market(,) I think this is up to us.” On this news, the price of Rentokil ADS fell by over 21%, from a closing price of $31.60 per ADS on September 10 2024 to the closing price of $24.95 per ADS on September 11, 2024.
The court-appointed lead plaintiff is the investor with the greatest financial interest in the relief sought by the class that is adequate and typical of the class members who conducts and oversees the litigation on behalf of the putative class. Each member of the putative class may propose to the court to be the lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to participate in any compensation is not affected by the decision to be the lead plaintiff or not.
Faruki & Faruki, LLP also encourages anyone with information regarding Rentokil’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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To view the original version of this press release, visit https://www.nevsfilecorp.com/release/233774
