The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Southern District of Ohio on behalf of those who acquired Cintas Corporation (“Cintas” or the “Company”) (NASDAQ: CTAS) securities during the period from March 6, 2017 through November 13, 2019 (the “Class Period”). Investors have until February 10, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The lawsuit alleges that Cintas failed to disclose that: (i) Cintas never tracked legacy margins following its acquisition of G&K Services, Inc. (“G&K”); (ii) the Company has systematically provided guidance with which it would outperform (a Beat and Raise scheme); (iii) undisclosed to the investing public, the Company has breached the law multiple times; and (iv) as a result of publicly known and undisclosed breaches of law, the Company’s Credit Agreement may be jeopardized.
On November 13, 2019, Spruce Point Capital Management released an investment research report finding that despite Cintas’s claims that the G&T acquisition would improve Cintas’s legacy margins, the Company never developed or implemented measures to specifically track Cintas legacy margins. Further, Cintas repeatedly set low financial projections, only to raise them as part of a “Beat and Raise” scheme. Finally, the report found that Cintas’s Fire Protection Services business had materially breached the law on at least three occasions related to proper inspection licenses, jeopardizing its Credit Agreement. On this news, shares of Cintas fell $3.61 per share, or 1.4%, to close at $255.24 on November 13, 2019.
If you acquired Cintas securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at firstname.lastname@example.org, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.