Boston, Massachusetts–(Newsfile Corp. – April 16, 2020) – Thornton Law Firm LLP alerts investors that a class action lawsuit has been filed against ServiceMaster Global Holdings, Inc. on behalf of ServiceMaster shareholders (NYSE: SERV). SERV investors interested in participating as a lead plaintiff in the case are encouraged to contact the firm at https://www.tenlaw.com/cases/SERV. Shareholders may also email email@example.com or call 617-531-3917. The deadline to apply to serve as a lead plaintiff is June 9, 2020.
FOR MORE INFORMATION, VISIT: https://www.tenlaw.com/cases/SERV
The lawsuit alleges that ServiceMaster did not disclose material information to investors in a timely manner, causing investors to suffer losses on October 22, 2019 and November 5, 2019.
On October 22, 2019, ServiceMaster announced disappointing preliminary financial results for the third-quarter 2019, having missed revenue and earnings estimates, and issued downward adjusted EBITDA guidance. The press release attributed the disappointing results 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 the price of ServiceMaster common stock fell $11.44 or 20 percent, closing at $44.70 on October 22, 2019, down from its $56.14 closing price on October 21, 2019.
On November 5, 2019, before the start of trading, ServiceMaster released its third-quarter 2019 financial results. In this press release discussing the “challenging quarter,” the Company revealed that it had been impacted by certain “legacy risks,” including “termite damage claims.” That same day, Defendants held an earnings call with analysts and investors to discuss ServiceMaster’s third-quarter 2019 financial results. On the call, Defendants informed the market that the increase in termite litigation-which had occurred “[i]n the past few years”-had impacted termite revenue and these issues would continue throughout 2020.
On this news, the price of ServiceMaster common stock fell $1.42, or 3.5 percent, to close at $39.15 on November 5, 2019. As the market continued to digest the disappointing news, ServiceMaster shares further declined by $3.41, or 9 percent, closing at $35.74 on November 6, 2019. All told, following the November 5, 2019 disclosure, ServiceMaster stock suffered a total decline of $4.83 from the November 4, 2019 closing price.
Investors who have suffered a loss as a result of their investment in SERV stock (NYSE: SERV) are encouraged to contact the Thornton Law Firm’s shareholder rights team at http://www.tenlaw.com/cases/SERV, by email at firstname.lastname@example.org, or calling 617-531-3917. 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.
FOR MORE INFORMATION: https://www.tenlaw.com/cases/SERV
Thornton Law Firm’s securities attorneys are highly experienced in representing individual shareholders and institutional investors in recovering damages caused by violations of the securities laws. Its attorneys have established track records litigating securities cases in courts throughout the country and recovering losses on behalf of shareholders. This may be considered Attorney Advertising in some jurisdictions. Prior results do not guarantee or predict a similar outcome with respect to any future matter.
Thornton Law Firm LLP
State Street Financial Center
1 Lincoln Street
Boston, MA 02111