#United States #New York #Class Action #Levi Korsinsky #Vestis Corporation

Levi & Korsinsky Alerts Investors on Vestis Corporation Class Action Lawsuit

On June 27, 2025, Levi & Korsinsky, LLP announced the initiation of a class action lawsuit affecting investors in Vestis Corporation (NYSE: VSTS). This legal action aims to recover alleged losses sustained by investors from May 2, 2024, to May 6, 2025, attributed to alleged securities fraud by the company.

Class Action Details

The lawsuit targets investors who were negatively impacted during the defined period. It primarily addresses allegations concerning misinformation disseminated by Vestis' management regarding the company's business health and strategic growth initiatives. The complaint suggests that the defendants offered overly optimistic statements to investors while failing to disclose significant adverse information, which ultimately misled investors about Vestis’ operational capabilities and future performance.

The lawsuit comes on the heels of Vestis' announcement on May 7, 2025, revealing disappointing financial results for Q2 of fiscal 2025. The company attributed their underperformance to what they described as a loss of business exceeding new customer acquisitions and made statements indicating significant struggles with customer retention and revenue growth. Following this announcement, Vestis’ stock plummeted from $8.71 to $5.44 per share, marking a dramatic decline of approximately 37.54% in just 24 hours.

Call for Action

Investors who experienced losses during the stipulated timeframe must act quickly. The deadline to file for lead plaintiff status in the lawsuit is August 8, 2025. This is a crucial opportunity for affected investors to pursue restitution for their losses. Interested parties can find more details about the lawsuit here.

Joseph E. Levi, Esq. and his dedicated team are available to assist potential plaintiffs in the class action. Investors can reach them via email at [email protected] or by phone at (212) 363-7500 for more information.

Why Choose Levi & Korsinsky?

Levi & Korsinsky has a notable history of advocating for investors, securing hundreds of millions of dollars in settlements over the last 20 years. They are highly regarded for their skill in navigating complex securities litigation and have consistently ranked among the top firms in securities litigation, according to ISS Securities Class Action Services.

Their commitment to investors is underlined by their belief that class members should not bear out-of-pocket costs while seeking reparations.

Conclusion

This class action lawsuit presents a significant opportunity for investors in Vestis Corporation. As Vestis continues to grapple with operational challenges, the transparency of its communications and business practices will be scrutinized. Stakeholders are encouraged to pursue their rights and potential recoveries without incurring costs, ensuring that their voice is heard in the legal process.