July 30, 2020 - The case was transferred to the U.S. District Court for the Western District of Tennessee.

June 12, 2020 - The case was voluntarily dismissed. A related case continues in the U.S. District Court for the Middle District of Tennessee.

April 10, 2020 - An investor in shares of ServiceMaster Global Holdings, Inc. (NYSE: SERV) filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by ServiceMaster Global Holdings, Inc. in connection with certain allegedly false and misleading statements made between February 26, 2019 and November 4, 2019.

Memphis, TN based ServiceMaster Global Holdings, Inc. provides residential and commercial termite and pest control, restoration, and cleaning services. ServiceMaster Global Holdings, Inc reported that its annual Total Revenue rose from $1.9 billion in 2018 to over billion in 2019, and that its Net Loss of $41 million in 2018 turned into a Net Income of $128 million in 2019.

On October 22, 2019 ServiceMaster Global Holdings, Inc announced its preliminary financial results for the third quarter of 2019. ServiceMaster Global Holdings, Inc missed estimates of both revenue and earnings. ServiceMaster Global Holdings, Inc also gave downward adjusted EBITDA guidance of $415 to $425 million, down from $435 to $445 million. According to the Company's press release, the disappointing results were in part due to termite damage claims arising primarily from Formosan termite activity, primarily in Mobile, Alabama. According to the Company, this was a known issue, and it had taken mitigation efforts, starting in 2018. The Company also announced the sudden department of Terminix Residential President Matthew J. Stevenson. Based on this news, shares of ServiceMaster fell by 20% on the same day.

On November 5, 2019, before the start of trading, ServiceMaster Global Holdings, Inc released its third quarter 2019 financial results. In this press release discussing the “challenging quarter,” the Company revealed that it had been impacted by certain “legacy risks,” including “termite damage claims.” That same day, ServiceMaster Global Holdings, Inc held an earnings call with analysts and investors to discuss ServiceMaster’s third quarter 2019 financial results. On the call, ServiceMaster Global Holdings, Inc informed the market that the increase in termite litigation—which had occurred “[i]n the past few years”—had impacted termite revenue and these issues would continue throughout 2020.

Shares of ServiceMaster Global Holdings, Inc (NYSE: SERV) declined from $58.56 per share in August 20, 2019 to as low as $33.53 per share on November 14, 2019.

According to the complaint the plaintiff alleges on behalf of purchasers of ServiceMaster Global Holdings, Inc. (NYSE: SERV) common shares between February 26, 2019 and November 4, 2019, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between February 26, 2019 and November 4, 2019, the defendants repeatedly assured the market that ServiceMaster was successfully executing upon initiatives to improve the performance in the Terminix segment, that the defendants stated that Terminix would reach a positive “inflection point” and was “definitely the driver” for positive trends expected in the second half of 2019, that unbeknownst to investors, however, in the past several years the Terminix segment had experienced an adverse trend of costly termite litigation, primarily related to Formosan termite activity, and that this negative trend, which would ultimately impact ServiceMaster’s current and future financial results, was known to Defendants between February 26, 2019 and November 4, 2019, as by their own later admission they had been taking mitigating measures since 2018.