| COMPANY |
Rentokil Initial plc |
| COURT |
United States District Court for the Western District of Tennessee |
| CASE NUMBER |
24-cv-02932 |
| JUDGE |
The Hon. Mark Saalfield Norris Sr. |
| CLASS PERIOD |
December 1, 2023 through September 10, 2024 |
| SECURITY TYPE |
American Depositary Shares |
LEAD PLAINTIFF DEADLINE IS JANUARY 27, 2025.
If you have suffered losses and would like to discuss your rights, please fill out this form or you may contact Jonathan Naji, Esq. at (484) 270-1453 or via e-mail at info@ktmc.com.
Case Background:
On October 12, 2022, Rentokil acquired Tennessee-based Terminix Global Holdings, Inc. (“Terminix”), resulting in Rentokil becoming one of the largest pest control service providers in North America.
The Class Period begins on December 1, 2023, when before markets opened, Rentokil issued a press release announcing that Bradley S. Paulsen had been appointed as CEO of Rentokil’s North America Region and highlighted that Rentokil has “a significant opportunity for growth and value creation as we integrate Terminix in North America and Brad brings a proven track record of successful delivery.”
On April 18, 2024, Rentokil announced its first quarter 2024 financial results and revealed that North American organic growth increased by 1.5% year-over-year, below prior guidance of 2% for the first quarter of 2024 and 2% to 4% for full year 2024. During the corresponding earnings call, after analysts expressed concerns that the Terminix integration may be negatively impacting organic growth in North America, Rentokil’s CEO revealed that the company had included the impacts of the integration into the full year 2024 estimates. On this news, Rentokil ADS price fell $2.64 per ADS, or more than 9%, from a close of $28.25 per ADS on April 17, 2024, to close at $25.61 per ADS on April 18, 2024.
On September 11, 2024, Rentokil announced that the company now anticipated only 1% North American organic revenue growth for the second half of 2024, below the prior guidance of 2% to 4%, citing that there had been “some modest disruption to organic growth from branch integration.” During the corresponding call, Rentokil’s CFO admitted that after two years of integration efforts, Rentokil still had “[two] separate businesses” that were “not integrated yet.” During the same call, Rentokil’s CEO also admitted that “[t]his is a manifestation of execution challenges . . . I don’t think it’s [a] market [issue][,] I think this is on us.” On this news, Rentokil ADS price fell $6.65 per ADS, or more than 21%, from a close of $31.60 per ADS on September 10, 2024, to close at $24.95 per ADS on September 11, 2024.
The complaint 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 of the foregoing, Defendants’ positive statements about the company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
What is a Lead Plaintiff?
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.