(NEW YORK, NY, April 1, 2020) Labaton Sucharow LLP, a leading investor rights law firm, announces it is investigating potential securities claims on behalf of shareholders of ServiceMaster Global Holdings, Inc. (NYSE: SERV) concerning allegations that ServiceMaster may have issued materially misleading business information to the investing public.
ServiceMaster is a leading provider of essential services to residential and commercial customers in the termite, pest control, cleaning and restoration markets. The company’s largest and most profitable business segment is Terminix, a termite and pest control business that primarily operates in the United States. ServiceMaster’s executives repeatedly assured the market that ServiceMaster was successfully executing upon initiatives to improve the performance in the Terminix segment. We are investigating whether those assurances were false.
On October 22, 2019, ServiceMaster announced disappointing preliminary financial results for the third quarter 2019, having missed revenue and earnings estimates. The Company also gave downward adjusted EBITDA guidance of $415 to $425 million, down from $435 to $445 million. The press release attributed the disappointing results partly 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 ServiceMaster common stock fell $11.44 or 20%, to close at $44.70 on October 22, 2019.
If you purchased shares or derivatives of ServiceMaster, and wish to learn more or discuss the issues surrounding the investigation, please contact David J. Schwartz using the toll free number (800) 321-0476 or via email at firstname.lastname@example.org or email@example.com.