Robbins LLP is Investigating Allegations that Vestis Corporation (VSTS) Misled Investors regarding Customer Growth

Robbins LLP informs stockholders that a class action was filed on behalf of investors who purchased or otherwise acquired Vestis Corporation (NYSE:VSTS) securities between May 2, 2024 and May 6, 2025. Vestis is a North American company that provides uniform rentals and workplace supplies across the U.S. and Canada.

The Allegations

According to the complaint, defendants failed to disclose to investors that Vestis would be unable to execute on planned strategic initiatives to drive purported improvements to the customer experience and its onboarding efforts in order to drive new customer growth, increased customer retention, and increased revenue from existing customers. The complaint alleges that these statements caused stockholders to purchase Vestis' securities at artificially inflated prices.  

According to the complaint, on May 7, 2025, Vestis announced its financial results for the second quarter of fiscal 2025, withdrew its revenue and growth guidance for the full fiscal year 2025, and provided guidance for the third quarter of fiscal 2025 that fell significantly below market expectations.  The Company attributed its poor results partially to “lost business in excess of new business,” but primarily on “lower adds over stops, which is how we describe volume changes with our existing customers.”  The Company attributed its decision to pull full-year guidance and provide disappointing third quarter targets to the “increasingly uncertain macro environment.” 

On this news, the price of Vestis' common stock fell from a closing market price of $8.71 per share on May 6, 2025, to $5.44 per share on May 7, 2025, a decline of about 37.54% in the span of just a single day. 

What Now: You may be eligible to participate in the class action against Vestis Corporation. Shareholders who want to serve as lead plaintiff for the class must file a motion for lead plaintiff by August 8, 2025. The lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation.  You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member.