INVESTIGATION ALERT: Labaton Sucharow Announces a Proprietary Investigation of Securities Claims Against ServiceMaster Global...
April 02 2020 - 8:45AM
Business Wire
On April 1, 2020, Labaton Sucharow LLP, a leading investor
rights law firm, announces it is investigating potential securities
claims on behalf of shareholders of ServiceMaster Global Holdings,
Inc. (NYSE:SERV) concerning allegations that ServiceMaster may have
issued materially misleading business information to the investing
public.
ServiceMaster is a leading provider of essential services to
residential and commercial customers in the termite, pest control,
cleaning and restoration markets. The company’s largest and most
profitable business segment is Terminix, a termite and pest control
business that primarily operates in the United States.
ServiceMaster’s executives repeatedly assured the market that
ServiceMaster was successfully executing upon initiatives to
improve the performance in the Terminix segment. We are
investigating whether those assurances were false.
On October 22, 2019, ServiceMaster announced disappointing
preliminary financial results for the third quarter 2019, having
missed revenue and earnings estimates. The Company also gave
downward adjusted EBITDA guidance of $415 to $425 million, down
from $435 to $445 million. The press release attributed the
disappointing results partly to “termite damage claims arising
primarily from Formosan termite activity,” primarily in Mobile,
Alabama. The Company further stated that this had been a known
issue, having taken mitigating measures “starting in 2018.”
Finally, the Company announced the sudden departure of Matthew J.
Stevenson in his role as President of Terminix Residential.
On this news ServiceMaster common stock fell $11.44 or 20%, to
close at $44.70 on October 22, 2019.
If you purchased shares or derivatives of ServiceMaster, and
wish to learn more or discuss the issues surrounding the
investigation, please contact David J. Schwartz using the toll free
number (800) 321-0476 or via email at dschwartz@labaton.com or
recover@labaton.com.
About the Firm
Labaton Sucharow LLP is one of the world’s leading complex
litigation firms representing clients in securities, antitrust,
corporate governance and shareholder rights, and consumer
cybersecurity and data privacy litigation. Labaton Sucharow has
been recognized for its excellence by the courts and peers, and it
is consistently ranked in leading industry publications. Offices
are located in New York, NY, Wilmington, DE, and Washington, D.C.
More information about Labaton Sucharow is available at
www.labaton.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20200402005484/en/
David J. Schwartz Phone: (800) 321-0476 Email:
dschwartz@labaton.com or recover@labaton.com