Vestis Corp. Securities Lawsuit Investigation

Shamis & Gentile P.A., a law firm that advocates for investors who are victims of securities fraud, is investigating potential claims against Vestis Corp. (VSTS)

If you've held Vestis securities since or traceable to its spin-off from Aramark Uniform Services on October 2, 2023, you may be eligible to seek corporate reforms, the return of funds back to the Company, and a court approved incentive award, at no cost to you.

About Vestis

Vestis was separated from Aramark’s Uniform Services business and began trading on the New York Stock Exchange as VSTS on October 2, 2023. The company provides uniform rental and workplace supply services across North America.

What's being investigated

According to a class action complaint, shareholders allege that Vestis Corp. and certain executives misled investors about the company’s readiness to perform as an independent business following its spin-off from Aramark. From May 2, 2024, through May 6, 2025, management allegedly presented an optimistic picture of growth and integration progress while failing to disclose serious operational and governance challenges.

Investors claim Vestis inherited years of underinvestment from Aramark’s Uniform Services division, resulting in outdated facilities, weak sales infrastructure, and service gaps that undermined customer retention and sales execution. The company also allegedly lacked adequate internal controls and oversight, preventing leadership from accurately assessing operational performance or addressing these problems.

On May 6, 2025, Vestis reported disappointing Q2 2025 results, withdrew full-year guidance, and issued a weaker-than-expected outlook for the next quarter. Following these disclosures, the company’s stock fell 37.5%, dropping from $8.71 to $5.44 per share, as the market absorbed the extent of the previously undisclosed challenges. Shareholders allege these events revealed the truth about Vestis’ internal struggles and the risks that had not been addressed in previous filings, including the Form 10-12B information statement.

Key timeline

• October 2, 2023: Vestis completes its spin-off and initial public offering (IPO) from Aramark’s Uniform Services business. Investors allege the company’s early statements set unrealistic expectations for operational readiness and growth potential.
• May 2, 2024: Company communications highlight operational readiness and growth priorities post-spin. Investors allege these statements overstated readiness and masked legacy underinvestment.
• Mid-2024 to Early-2025: Quarterly updates and investor presentations emphasize execution, customer growth, and margin plans. Investors allege the company continued to reassure the market while service gaps, outdated facilities, and sales-force issues persisted.
• May 6, 2025: Vestis reports disappointing Q2 2025 results, withdraws full-year guidance, and issues lower-than-expected Q3 outlook. Shares fall ~37.5% (from $8.71 to $5.44). Investors allege this revealed previously concealed problems and served as a corrective disclosure.

Why investors may be concerned

Investors and plaintiffs allege that Vestis and its executives may have:

• Provided overly positive statements about the company’s business and growth prospects while failing to disclose operational and internal control challenges.
• Concealed the impact of underinvestment and service gaps, which may have undermined the company’s ability to achieve its stated growth objectives.
• Failed to maintain adequate internal controls, potentially leading to oversight failures at the board or officer level.
• Allowed misleading statements and omissions to persist, which plaintiffs argue may have resulted in significant investor losses when the true state of the business was revealed.

These allegations raise questions about the adequacy of Vestis’ governance, risk oversight, and disclosure practices during the class period.

Your Rights and Next Steps

Investors who purchased shares in or traceable to Vestis’ October 2023 spin-off and public listing may have claims under the federal securities laws based on alleged misstatements or omissions in the offering materials.

Potential next steps for shareholders:

• Act on behalf of the company: Investors may pursue claims alleging that Vestis directors or officers failed in their duties to the company. These cases seek to recover funds for the company itself and to implement governance reforms that strengthen oversight and internal controls.
• Stay informed: Shareholders can request updates on court filings, settlements, or any changes the company adopts as a result of this investigation.
• Provide documentation: If you wish to assist in the investigation, you may be asked to confirm your share ownership or provide relevant information about your holdings.

Shareholders May Be Eligible to Seek Reforms and Recovery

Securities investigations are time-sensitive. If you have held Vestis Corp. (NYSE: VSTS) since at least or traceable to the October 2, 2023 spin-off, you may be able to seek corporate reforms, the return of funds back to the Company, and a court approved incentive award for you, all at absolutely no cost.

To join the investigation and protect your rights, complete the form below.