Overview

A class action lawsuit has been filed against Rentokil Initial plc (“Rentokil” or the “Company”) (NYSE: RTO) and certain of the Company’s current senior executive officers alleging violations of the federal securities laws.  The Rentokil class action lawsuit is brought on behalf of all persons and entities who purchased or otherwise acquired Rentokil American Depositary Shares (“ADSs”) between December 1, 2023, and September 10, 2024, both dates inclusive (the “Class Period”).  Investors have until January 24, 2025, to seek appointment as lead plaintiff in the Rentokil class action lawsuit.

Based in Crawley, England, Rentokil provides pest control, hygiene, and wellness services worldwide.  The Company’s three main business lines are Pest Control, Hygiene & Wellbeing, and France Workwear.  Rentokil is the largest global pest control services provider.  North America Pest Control accounts for more than half of the Company’s annual revenue.  Leading up to the Class Period, Rentokil announced on October 12, 2022, that it had completed its acquisition of Memphis, Tennessee-based Terminix Global Holdings, Inc. (“Terminix”) in a transaction valued at $6.7 billion, including $1.34 billion in cash and over 129 million new Rentokil ADSs (the “Terminix Acquisition”).  As a result of the Terminix Acquisition, the Terminix business became part of Rentokil’s pest control business line, making Rentokil the largest pest control services provider in North America.  After the Terminix Acquisition closed, Rentokil claimed it was well-positioned to successfully integrate Terminix into Rentokil’s pest control business.

The Rentokil class action lawsuit alleges that Defendants, throughout the Class Period, consistently promoted the Terminix acquisition as a driver of growth and touted exceeding Phase One synergy targets in 2023.  Unbeknownst to investors, Rentokil faced internal disruptions and execution challenges during the integration, which negatively impacted business operations.  During the April 2024 earnings call, Defendants admitted these issues were self-inflicted rather than market-driven, raising doubts about their ability to manage the integration effectively.

Following these revelations, analysts expressed concerns about the integration’s impact on growth, leading to a 9% stock price decline, from $28.25 to $25.61, as investors lost confidence in the company’s strategy and execution.

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If you purchased or otherwise acquired Rentokil American Depositary Shares between December 1, 2023, and September 10, 2024, both dates inclusive, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at [email protected]. 

The deadline to apply to the Court to serve as lead plaintiff in the Rentokil class action lawsuit is January 24, 2025.