Faruqi & Faruqi, LLP is investigating the claims on behalf of Rentokil Investor Investing.com

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Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson encourages investors who have suffered losses greater than $75,000 in Rentokil to contact him directly to discuss their options

If you have suffered losses greater than $75,000 Rentokil between December 1, 2023 and September 10, 2024 and want to discuss your legal rights, call a Faruqi & Faruqi partner Josh Wilson direct on 877-247-4292 or 212-983-9330 (ext. 1310).

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New York, New York–(Newsfile Corp. – January 05, 2025) – Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Rentokil Initial (LON:) plc (“Rentokil” or the “Company”) (NYSE: RTO) and reminds investors of The deadline is January 27, 2025 to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company.

Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The company has recovered hundreds of millions of dollars for investors since its inception in 1995. See www.faruqilaw.com.

As set forth below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose the following: (1) Rentokil experienced levels of disruption in early integration pilot projects; Terminix; (2) Rentokil experienced significant, ongoing, self-inflicted challenges in executing the Terminix integration; (3) disruption and performance challenges jeopardized Rentokil’s integration plan for Terminix; (4) Rentokil and Terminix were still two separate companies that had not yet been integrated; (5) Rentokil’s failure to integrate Terminix adversely affected 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 false and misleading and/or lacked a reasonable basis at all relevant times.

The truth began to emerge before the market opened on April 18, 2024, when Rentokil issued a press release announcing its financial results for the first quarter of 2024, reporting that organic revenue growth in North America was up just 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 later in the day, Chief Executive Officer (“CEO”) Andrew M. Ransom assured investors that “our integration program is on track[,]” while Chief Financial Officer (“CFO”) Stuart M. Ingall-Tombs asserted, “we are now quite confident in our revenue guidance.” Following this news, the price of Rentokil ADSs fell by more than 9%, compared to a closing price of USD 28.25 per ADS on April 17, 2024 to a closing price of USD 25.61 per ADS on April 18, 2024.

The truth was revealed on September 11, 2024 when, before the market opened, Rentokil provided an unscheduled “Trading Update”, announcing that the company now expects only 1% organic revenue growth in North America for the second half of 2024 – well below the company’s Prior Guidance. In a related press release, Rentokil revealed, “[T]The trading performance in July and August was lower than expected. There was also a modest disruption to organic growth due to subsidiary integration.” During a related conference call with analysts later that day, CFO Ingall-Tombs revealed that, after nearly two years of integration efforts, “I think what we have is still because we have 2 separate businesses, which are mainly on the operational front-end and are not yet integrated. . . .” During the same conference call, CEO Ransom acknowledged, “This is a manifestation of the execution challenge, the execution — the need to improve our execution. It is not a market phenomenon. As we can see at the moment, if additional information comes to light to propose [sic] I reserve the right to change that answer, but I don’t think it’s marketable[,] I think this depends on us.” Following this news, the price of Rentokil ADSs fell by more than 21%, from a closing price of $31.60 per ADS on September 10, 2024 to a closing price of $24.95 according to ADS on September 11, 2024.

A court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class, who is adequate and typical of the class members and who directs and oversees the litigation on behalf of the putative class. Any putative class member may propose to the Court to serve as lead plaintiff through counsel of his or her choosing, or may choose to do nothing and remain an absent class member. Your ability to participate in any recovery is not affected by the decision whether or not you will be the lead plaintiff.

Faruqi & Faruqi, LLP also encourages anyone with information about Rentokil’s conduct to contact the company, including whistleblowers, former employees, shareholders and others.

Advertising of lawyers. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Past results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your specific case. All communications will be treated confidentially.

To view the original version of this press release, visit https://www.newsfilecorp.com/release/236022

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