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Oklahoma City, OK (December 13, 2019) – On December 12, 2019, a securities class action lawsuit was filed in the United States District Court for the Southern District of Ohio against Cintas Corporation (NASDAQ: CTAS). The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is March 6, 2017 through November 13, 2019. More specifically, according to the lawsuit, defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (1) Cintas never tracked legacy margins following the G&K acquisition; (2) the Company has systematically provided guidance with which it would outperform (a “Beat and Raise” scheme); (3) undisclosed to the investing public, the Company has breached the law multiple times; (4) as a result of publicly known and undisclosed breaches of law, the Company’s Credit Agreement may be jeopardized; and (5) as a result, defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
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.
Plaintiff seeks to recover damages on behalf of all Cintas Corporation shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above. You may move the Court no later than Monday, February 10, 2020 to serve as a lead plaintiff for the entire Class. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.
If you wish to discuss this action, obtain further information and participate in this or any other securities litigation, or should you have any questions or concerns regarding this notice or preservation of your rights, please contact: Robin Hester at firstname.lastname@example.org