We are investigating Cintas Corp. (CTAS) (“Cintas” or the “Company”) for potential violations of the federal securities laws.
On November 13, 2019, Spruce Point Capital Management (“Spruce Point”) issued a report on Cintas claiming to “have evidence that Cintas’ Fire Protection Services was charged with fraud and is causing a public safety hazard by having workers conduct fire and safety inspections without proper licenses or permits, and falsifying inspections.” Spruce Point additionally stated that “Cintas is facing financial strain in its core uniform rental business from its 2017 levered acquisition of G&K [Services, Inc.] for $2.1 bn,” asserting that “it appears management may have suppressed G&K revenue and misguided expenses.” On this news, Cintas’s stock price fell sharply during intraday trading.