NEW YORK, Dec. 24, 2024 (GLOBE NEWSWIRE) -- The law firm of Kirby McInerney LLP reminds investors of the January 27, 2024, deadline to seek the role of lead plaintiff in a federal securities class action filed on behalf of investors who acquired Rentokil Initial plc (“Rentokil” or the “Company”) (NYSE: RTO) American Depository Shares (“ADSs”) during the period from December 1, 2023, to September 10, 2024, inclusive (“the Class Period”).
[LEARN MORE ABOUT THE CLASS ACTION]
On April 18, 2024, 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 their “integration program is on track[,]" while Chief Financial Officer (CFO) Stuart M. Ingall-Tombs expressed strong confidence in the Company’s revenue guidance. On this news, the price of Rentokil ADSs fell 9%, from $28.25 per ADS on April 17, 2024, to a closing price of $25.61 per ADS on April 18, 2024.
Then, on September 11, 2024, Rentokil issued an unscheduled "Trading Update," slashing its North American organic revenue growth forecast for the second half of the year to just 1%, far below prior guidance. The Company blamed slower-than-expected sales in July and August and disruptions from integrating Terminix branches. During a call with analysts, CFO Jeremy Ingall-Tombs admitted ongoing challenges in merging systems and operations, while CEO Andy Ransom acknowledged the issues were due to internal execution failures rather than market conditions. He described the integration process as complex and far from complete, despite earlier efforts to address disruptions. Analysts criticized Rentokil for its missteps. UBS lowered profit forecasts by 9%, predicting prolonged integration challenges and slowed growth through 2026, while Deutsche Bank questioned the company’s credibility and warned of further hurdles. On this news, the price of Rentokil shares fell $6.65 per ADS, or approximately 21%, from $31.60 per ADS on September 10, 2024, to a closing price of $24.95 per ADS per share on September 11, 2024.
The lawsuit alleges during the Class Period, the Defendants made materially false and misleading statements and failed to disclose material adverse facts about the Company’s business, operations, and prospects, including: (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 revenue growth in North America; and (6) as a result, the Defendant’s positive statements were materially false and misleading.
If you purchased or otherwise acquired Rentokil securities, have information, or would like to learn more about this investigation, please contact Thomas W. Elrod of Kirby McInerney LLP by email at investigations@kmllp.com, or fill out the form below, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contacts
Kirby McInerney LLP
Thomas W. Elrod, Esq.
212-699-1180
https://www.kmllp.com
investigations@kmllp.com
