Aramark Spinoff Vestis Hit With Shareholder Suit Over Stock Drop

Aramark offshoot Vestis Corp. is facing a proposed securities class action alleging the company made false and misleading statements that cost shareholders more than $1 billion in value when the company revealed its growth predictions were wrong.

The company failed to disclose that Aramark “underinvested in the business that became Vestis,” and that Vestis “operated with outdated facilities and an underperforming sales force,” which kept it from growing and caused customers to leave, the plaintiff, Plumbers, Pipefitters and Apprentices Local No. 112 Pension Fund alleges.

In September 2023, a month before Vestis began trading as a public company, its ...