Vestis Corp

On May 13, 2022, Cake Love Co. (“Cake Love”) commenced a putative class action lawsuit against AmeriPride Services, LLC (“AmeriPride”), a subsidiary of Vestis, in the United States District Court for the District of Minnesota. The lawsuit was subsequently updated to add an additional named plaintiff, Q-Mark Manufacturing, Inc. (“Q-Mark” and, together with Cake Love, the “Plaintiffs”). Plaintiffs allege that the defendants increased certain pricing charged to members of the purported class without the proper notice required by service agreements between AmeriPride and members of the purported class and that AmeriPride breached the duty of good faith and fair dealing. Plaintiffs seek damages on behalf of the purported class representing the amount of the allegedly improperly noticed price increases along with attorneys’ fees, interest and costs. The parties have engaged in discovery. AmeriPride has moved for summary judgment related to Cake Love. The parties engaged in meditation, which has resulted in ongoing settlement discussions. The case is currently stayed until May 9, 2024. The stay may or may not be extended while settlement discussions are ongoing. We believe we have numerous defenses and intend to continue to vigorously defend the action. We cannot predict the outcome of this legal matter, nor can we predict whether any outcome will have a material adverse effect on our consolidated statements of income and/or consolidated statements of cash flows. Accordingly, we have made no material provision for this legal matter in the Consolidated and Combined Financial Statements.

On April 19, 2024, Consolidated Mills Supply, Inc., operating as Vestis Group, an entity involved in the food ingredients business, provided a notice to us alleging trademark infringement based on our use of the “Vestis” trademark and logo. On April 30, 2024, the United States Patent and Trademark Office granted us three federal trademark registrations for our “Vestis” trademarks and our associated logos for use in connection with several classes of goods and services that we offer to our customers. On April 30, 2024, we responded to Consolidated Mills Supply denying any trademark infringement. We believe Consolidated Mills Supply’s claims lack merit and that we have strong defenses to the alleged infringement claims. We will rigorously defend ourselves against this claim of infringement.