Vestis Corporation Faces Class Action Lawsuit Over 37% Stock Plunge

Vestis Corporation has become the subject of multiple class action securities fraud lawsuits following its May 7, 2025 announcement of disappointing second-quarter financial results and withdrawal of full-year 2025 revenue and growth guidance. The company cited lost business exceeding new business and declining volumes from existing customers as key reasons for its poor performance, which caused its stock price to drop sharply. The lawsuits allege that Vestis and its executives made materially false and misleading statements about the company's growth prospects and operational capabilities, failing to disclose the true state of its business and the risks it faced. Investors who purchased Vestis securities between May 2, 2024 and May 6, 2025 are encouraged to file lead plaintiff motions by the August 8, 2025 deadline to pursue potential recovery of losses under federal securities laws. Meanwhile, analysts maintain a cautious Hold rating on Vestis stock, citing uncertainty about the company’s future strategic direction and financial outlook amid transitional management and a challenging business environment. Insider buying activity, however, shows some positive sentiment among corporate insiders despite these challenges.