INVESTOR UPDATE: Top Ranked Shareholder Rights Firm Labaton Sucharow Announces Proprietary Investigation of ServiceMaster Global Holdings, Inc. (SERV)

NEW YORK, NY / ACCESSWIRE / April 9, 2020 / Labaton Sucharow LLP, a leading and award investor rights law firm, announces it is developing a proprietary investigation concerning potential securities claims on behalf of shareholders of ServiceMaster Global Holdings, Inc. (NYSE:SERV) resulting from 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. Labaton is continuing to actively monitor the company during its investigation.

If you purchased shares or options 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 dschwartz@labaton.com or recover@labaton.com.

About the Firm

Labaton Sucharow LLP is one of the world's leading complex litigation firms representing clients in securities, antitrust, corporate governance and shareholder rights, and consumer cybersecurity and data privacy litigation. Labaton Sucharow has been recognized for its excellence by the courts and peers, and it is consistently ranked in leading industry publications. Offices are located in New York, NY, Wilmington, DE, and Washington, D.C. More information about Labaton Sucharow is available at http://www.labaton.com.

Contact:
David J. Schwartz
(800) 321-0476
dschwartz@labaton.comor recover@labaton.com

SOURCE: Labaton Sucharow LLP

ReleaseID: 584539