Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against ServiceMaster Global Holdings, Inc. (NYSE: SERV) on behalf of ServiceMaster stockholders. Our investigation concerns whether ServiceMaster has violated the federal securities laws and/or engaged in other unlawful business practices.
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ServiceMaster provides services to residential and commercial customers in the termite, pest control, cleaning and restoration markets. The company’s Terminix segment is a termite and pest control business that primarily operates in the United States. ServiceMaster’s executives may have repeatedly assured the market that ServiceMaster was successfully executing upon initiatives to improve the performance in the Terminix segment.
ServiceMaster provided preliminary financial results for the third quarter 2019 on October 22, 2019, missing revenue and earnings estimates.
The Company adjusted EBITDA guidance to $415 to $425 million, down from $435 to $445 million. The Company attributed disappointing results partly to "termite damage claims arising primarily from Formosan termite activity," primarily in Alabama. The Company further stated that this had been a known issue, having taken mitigating measures in 2018. The Company also 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 or otherwise acquired ServiceMaster shares and suffered a loss, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Melissa Fortunato or Marion Passmore by email at email@example.com, or telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
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Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.