Vestis Brass Sued Over Lost Customers After Spinoff From Aramark

Vestis Corp. directors and executives made misleading statements about pricing and customer satisfaction following the uniform rental company’s 2023 spinoff from Aramark, an investor alleges.

Disclosures in May about lower revenue and withdrawn guidance due to lost business prompted a 38% stock selloff and a proposed securities class action, Lawrence Hollin says on behalf of Vestis. Hollin filed his derivative action Thursday in the US District Court for the Northern District of Georgia.

Current and former top executives and board members are responsible for damage to the company from its exposure to “massive potential class-wide liability,” Hollin says.

The proposed ...