LOS ANGELES, April 17, 2020 (GLOBE NEWSWIRE) -- The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired ServiceMaster Global Holdings Inc. ("ServiceMaster" or the Company") (NYSE: SERV) securities between February 26, 2019 and November 4, 2019, inclusive (the “Class Period”). ServiceMaster investors have until June 9, 2020 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
On October 22, 2019, ServiceMaster announced preliminary third quarter 2019 financial results, reporting net income of $25 million compared to net income in the prior year period of $71 million, and attributed the results to "termite damage claims arising primarily from Formosan termite activity." The Company also announced the sudden departure of Matthew J. Stevenson from his role as President of Terminix Residential.
On this news, the Company's share price fell $11.44, or 20%, to close at $44.70 per share on October 22, 2019, thereby injuring investors.
Then, on November 5, 2019, ServiceMaster announced its third quarter 2019 financial results in a press release that revealed the Company had been impacted by certain "legacy risks," including "termite damage claims."
On this news, the Company's share price fell $1.42, or nearly 4%, to close at $39.15 per share on November 5, 2019, thereby injuring investors further.
The complaint alleges that defendants made false and/or misleading statements and/or failed to disclose: (1) that ServiceMaster had failed to properly inspect and treat for Formosan activity; (2) as a result thereof, the Company was and continued to experience a material adverse trend of costly litigation from injured customers which was not disclosed to investors; (3) that in an unsuccessful attempt to mitigate this trend, Defendants had been taking remedial measures since at least 2018, including drastically raising prices for termite treatments in Mobile, Alabama to deter contract renewals; and (4) as a result of the foregoing, ServiceMaster’s financial results were reasonably likely to be impacted, and would continue to impact the Company into 2020.
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If you purchased ServiceMaster securities during the Class Period, you may move the Court no later than June 9, 2020 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased ServiceMaster securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contacts
The Law Offices of Frank R. Cruz, Los Angeles
Frank R. Cruz, 310-914-5007
fcruz@frankcruzlaw.com
www.frankcruzlaw.com