Investors Urged to Seek Legal Counsel in Rentokil Securities Class Action
London, Friday, 6 December 2024.
Rosen Law Firm advises Rentokil investors to secure counsel before January 27, 2025, amid allegations of misleading statements about Terminix integration impacting stock value.
Legal Action Details
Multiple law firms have filed a securities class action lawsuit against Rentokil Initial plc (NYSE: RTO) [1][2][3][4]. The lawsuit represents investors who purchased American Depositary Shares (ADS) between December 1, 2023, and September 10, 2024 [1][2]. The legal action centers on allegations that Rentokil’s management made materially false statements and failed to disclose significant challenges in integrating Terminix into their operations [2].
Stock Performance Impact
The company’s stock value experienced two significant drops in 2024. First, on April 18, 2024, when Rentokil reported disappointing organic revenue growth of just 1.5% in North America, the stock fell by $2.64 to $25.61 per ADS [2][4]. Subsequently, on September 11, 2024, following a trading update that reduced growth expectations to 1% for the second half of 2024, the stock suffered another dramatic decline of $6.65, settling at $24.95 per ADS [2][4].
Integration Challenges
The lawsuit alleges that Rentokil experienced significant disruptions during the early pilots of the Terminix integration [2][3]. According to legal documents, the company faced ongoing, self-inflicted execution challenges that were not disclosed to investors [2]. As of April 2024, Rentokil and Terminix reportedly remained two separate businesses, contrary to integration timeline projections [3].
Legal Proceedings and Deadlines
Investors seeking to serve as lead plaintiff must file their motion with the Court by January 27, 2025 [1][2][3][4]. The class action was filed in the United States District Court for the Western District of Tennessee [3]. Multiple law firms, including Rosen Law Firm, The Law Offices of Frank R. Cruz, and Bragar Eagel & Squire, P.C., are currently representing affected investors [1][2][3].