Rentokil Initial plc Class Action Lawsuit - RTO
Case Summary
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The Rentokil class action lawsuit, captioned Laborers Local #235 Pension Fund v. Rentokil Initial plc, No. 24-cv-02932 (W.D. Tenn.), charges Rentokil Initial plc (NYSE: RTO) and certain of Rentokil’s top executives with violations of the Securities Exchange Act of 1934.
If you suffered substantial losses and wish to serve as lead plaintiff of the Rentokil class action lawsuit, please provide your information in the form on this page. You can also contact attorney J.C. Sanchez or Jennifer N. Caringal of Robbins Geller by calling 800/449-4900 or via e-mail at info@rgrdlaw.com. Lead plaintiff motions for the Rentokil class action lawsuit must be filed with the court no later than January 27, 2025.
CASE ALLEGATIONS: Rentokil provides pest control, hygiene, and wellness services worldwide. According to the Rentokil class action lawsuit, Rentokil announced on October 12, 2022 that it had completed its acquisition of Memphis, Tennessee-based Terminix Global Holdings, Inc. in a transaction valued at $6.7 billion, including $1.34 billion in cash and over 129 million new Rentokil American Depositary Shares (“ADSs”).
The Rentokil class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) Rentokil experienced levels of disruption in the early pilots of the Terminix integration; (ii) Rentokil experienced significant, ongoing, self-inflicted execution challenges integrating Terminix; (iii) the disruption and execution challenges imperiled Rentokil’s integration plan for Terminix; (iv) Rentokil and Terminix were still two separate businesses that were not yet integrated; and (v) Rentokil’s failure to integrate Terminix negatively impacted Rentokil’s business and operations, particularly organic revenue growth in North America.
The Rentokil class action lawsuit further alleges that on April 18, 2024, Rentokil reported that organic revenue growth in North America had increased by only 1.5% year-over-year – below Rentokil’s guidance of 2% for the first quarter and 2% to 4% for the full year, issued just six weeks earlier on March 7, 2024. On this news, the price of Rentokil ADSs fell more than 9%, according to the complaint.
Then, on September 11, 2024, the Rentokil class action lawsuit further alleges that Rentokil provided an unscheduled “Trading Update,” announcing that Rentokil now expected only 1% organic revenue growth in North America for the second half of 2024 – well below Rentokil’s prior guidance. On this news, the price of Rentokil ADSs fell more than 21%, according to the complaint.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Rentokil ADSs during the class period to seek appointment as lead plaintiff in the Rentokil class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Rentokil class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Rentokil class action lawsuit. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the Rentokil class action lawsuit.
ABOUT ROBBINS GELLER: Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities fraud cases. Our Firm has been #1 in the ISS Securities Class Action Services rankings for six out of the last ten years for securing the most monetary relief for investors. We recovered $6.6 billion for investors in securities-related class action cases – over $2.2 billion more than any other law firm in the last four years. With 200 lawyers in 10 offices, Robbins Geller is one of the largest plaintiffs’ firms in the world and the Firm’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig.