SAN FRANCISCO, Dec. 27, 2019 (GLOBE NEWSWIRE) -- Hagens Berman urges Cintas Corporation (CTAS) investors who have suffered significant losses to submit their losses now to learn if they qualify to recover their investment losses. The February 10, 2020 lead plaintiff deadline in a securities fraud class action that has been filed against the company and senior executives is fast approaching.
Cintas Corporation (CTAS) Securities Class Action:
The complaint alleges that throughout the Class Period Defendants falsely represented that its acquisition of competitor G&K Service would improve Cintas’ legacy margins while it was discussing the acquisition to investors, but in truth, Cintas never developed or implemented measures to specifically track Cintas legacy margins. In addition, the complaint alleges that Cintas repeatedly set low financial projections, only to raise and beat them to artificially increase its share price. Finally, according to the complaint, Cintas concealed that its Fire Protection Services business had breached the law multiple times, placing the Company’s Credit Agreement in jeopardy.
On November 13, 2019, Spruce Point Capital published a scathing report about Cintas, accusing Cintas’ Fire Protection Services of committing fraud. Spruce Point further claimed that Cintas was over-estimating expenses, only to roll them back and claim outperformance.
On this news, shares of Cintas fell $3.61 per share to close at $255.24 per share on November 13, 2019, damaging investors.
If you invested in Cintas between Mar. 6, 2017 and Nov. 13, 2019 (the “Class Period”) and suffered significant losses, you may qualify to be a lead plaintiff – one who selects and oversees the attorneys prosecuting the case. Contact Hagens Berman immediately for more information about the case and being a lead plaintiff.
“We’re focused on recovering investors’ substantial losses, the matters raised in the analyst report, and the extent to which investors may have been misled,” said Hagens Berman partner Reed Kathrein.
If you purchased shares of Cintas and suffered significant losses, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Cintas should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email CTAS@hbsslaw.com.
About Hagens Berman
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Reed Kathrein, 844-916-0895