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Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against Vestis Corporation (VSTS)

1. A class action lawsuit filed against Vestis Corporation for misleading revenue outlook. 2. Plaintiffs allege false information on growth, minimizing risks from macroeconomic factors. 3. Vestis failed to achieve promised growth, resulting in declining revenue from existing customers. 4. Investors encouraged to participate before August 8 lead plaintiff motion deadline.

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FAQ

Why Very Bearish?

The allegations of misleading financial outlook can significantly impair investor confidence. Historical context shows that firms with similar lawsuits often experience substantial stock declines.

How important is it?

The lawsuit directly challenges the credibility of Vestis' financial projections, which can influence trading behavior. Legal challenges frequently detract from positive investor sentiment and can drive down stock price significantly.

Why Short Term?

The immediate impact is likely due to investor reaction to the lawsuit's news. Similar cases have historically resulted in rapid stock price adjustments.

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VSTS
NEW YORK, June 10, 2025 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of all persons or entities who purchased or otherwise acquired Vestis Corporation (“Vestis” or the “Company”) (NYSE: VSTS) securities between May 2, 2024 and May 6, 2025, both dates inclusive (the “Class Period”). The Complaint alleges that Defendants created the false impression that they possessed reliable information pertaining to Vestis’ projected revenue outlook and anticipated growth while also minimizing risk from seasonality and macroeconomic fluctuations. In truth, Vestis’ optimistic guide, promising a return to positive growth in fiscal 2025 on the back of improving service efficacy and annual price increases while improving “satisfaction, loyalty, and retention” rates fell short of reality and Vestis was simply not equipped achieve its growth guidance as the realization of these efforts instead resulted in a significant decline of revenue from existing customers. Investors who purchased or otherwise acquired shares of Vestis should contact the Firm prior to the August 8, 2025 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com. Please visit our website at http://www.gme-law.com for more information about the firm.

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