Former Terminix Parent Free of Investors’ Misrepresentation Suit

ServiceMaster Global Holdings Inc. and two ex-officers locked down a lower court’s decision to throw out claims that the former Terminix parent defrauded investors by misrepresenting the company’s financial conditions.

A three-judge panel at the US Court of Appeals for the Sixth Circuit on Thursday affirmed a Tennessee federal court’s October 2022 dismissal of the case for failure to state a claim.

Investors who brought the suit failed to show that the defendants knowingly defrauded them, the Sixth Circuit said.

The suit had alleged that ServiceMaster and the executives understated the company’s liability for termite damage claims during a widespread ...