SAN FRANCISCO, June 19, 2026 (GLOBE NEWSWIRE) — Embecta Corp. (NASDAQ: EMBC) faces a securities class action lawsuit, which seeks to represent investors who purchased or acquired Embecta common stock between November 25, 2025 and May 4, 2026. The lawsuit follows the company’s disastrous Q2 2026 earnings report, apparently at odds with prior narrative, which triggered a massive selloff in the stock and analysts’ questions.
These developments have prompted national shareholder rights firm Hagens Berman to open an investigation into claims that Embecta violated the federal securities laws.
The firm encourages Embecta investors who suffered substantial losses to submit your losses now.
Class Period: Nov. 25, 2025 – May 4, 2026
Lead Plaintiff Deadline: Aug. 17, 2026
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Embecta Corp. (EMBC) Securities Class Action:
Embecta is a global medical device company whose core business product is pen needles – sterile, single-use, medical devices, designed to be used in conjunction with pen injectors that inject insulin or other diabetes medications. In the past, pen needle revenues have comprised over 70% of the company’s total revenues.
The litigation’s primary focus is on the propriety of Embecta’s Class Period repeated assurances that “insulin pens have been stable […] showing the underlying resilience and the durability of that portfolio[]” and “our pen needle business is incredibly resolute.” This narrative formed the basis for the company’s February 5, 2026 guidance reiterating 2026 adjusted EPS of $2.80 – $3.00. The company also touted maintenance of its dividend within its capital allocation plans as a return of capital to shareholders.
The complaint alleges the company’s assurances and guidance were misleading when given because Embecta knew or recklessly disregarded that weaknesses in the pen needle market was likely to significantly disrupt the company’s annual guidance and Q2 results.
On May 5, 2026, investors’ expectations vanished. That day, Embecta reported Q2 2026 adjusted EPS of $0.27, a staggering sequential and year-over-year decline of about 61%. In contrast to the company’s assurances of stability, resilience, and durability, Embecta’s pen needles revenues also suffered massive sequential and year-over-year declines. Of additional concern, Embecta slashed its 2026 adjusted EPS guidance to $1.55 – $1.75, or down roughly 43% at the mid-point, and reduced its dividend by 93% to just $0.01.
In response, the market sent the price of Embecta shares tumbling, with one prominent analyst who downgraded the company highlighting Embecta management’s “need to rebuild investor credibility on commercial execution and the profitability outlook.”
“Our investigation is focused the extent to which and when Embecta and its management knew about pen needle and U.S. business revenue headwinds, and whether they were sufficiently transparent about those risks,” said Reed Kathrein, the Hagens Berman partner leading the firm’s investigation.
If you invested in Embecta and have substantial losses, or have knowledge that will assist the firm’s investigation, submit your losses now »
If you’d like more information and answers to other frequently asked questions about the firm’s Embecta investigation, read more »
Whistleblowers: Persons with non-public information regarding Embecta should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
