RM LAW, P.C. announces that a class action lawsuit has been filed on behalf of all persons or entities that purchased ServiceMaster Global Holdings, Inc. ("ServiceMaster" or the "Company") (NYSE: SERV) securities during the period from February 26, 2019 through November 4, 2019 inclusive (the “Class Period”).
ServiceMaster shareholders may, no later than June 9, 2020, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of ServiceMaster and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (844) 291-9299 or to sign up online, click here.
According to the lawsuit, throughout the Class Period, ServiceMaster and its senior management represented that the Company was successfully executing upon initiatives to improve the performance of its Terminix segment. Unbeknownst to investors, however, the Terminix segment had experienced an adverse trend of costly termite litigation, primarily related to Formosan activity, in recent years.
Investors began to learn the truth when, on October 22, 2019, ServiceMaster announced disappointing preliminary financial results for the third quarter 2019 and blamed the poor performance on "termite damage claims arising primarily from Formosan termite activity" primarily in Mobile, Alabama. At that time, the Company revealed that this was a known issue for which mitigation efforts had commenced "starting in 2018." The Company also announced that the President of Terminix Residential had abruptly departed.
On this news, shares of ServiceMaster fell 20%, or $11.44 per share.
On November 5, 2019, ServiceMaster released its final Q3 2019 financial results, informing investors that: (1) the increase in termite claims litigation that occurred "[i]n the past few years" impacted termite revenue by 7-8% and would continue throughout 2020; and (2) contract price increases in Mobile were part of an effort to "mitigate" termite damage claims (essentially by discouraging contract renewals). Shares fell further on this news, dropping $1.42 (3.5%) on November 5, and another $3.41 (9%) on November 6, as the market absorbed the news.
If you are a member of the class, you may, no later than June 9, 2020, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain RM LAW, P.C. or other counsel of your choice, to serve as your counsel in this action.