Rentokil Sued by Investors Over Terminix Acquisition, Stock Drop

Rentokil Initial PLC characterized its acquisition of Terminix Global Holdings Inc. in glowing terms despite actually facing business integration challenges that affected its growth and stock price, an investor alleges.

The 21% drop in the company’s American Depositary Shares on Sept. 11 was the security’s steepest selloff in 16 years, according to data compiled by Bloomberg.

The U.K.-based pest control giant repeatedly touted the progress of combining operations with Tennessee-based Terminix, according to the investor, the Laborers Local #235 Pension Fund. The fund filed its class action complaint Tuesday in the US District Court for the Western District of Tennessee. ...