PR Newswire
Important Information Regarding Section 20(a) Individual Liability Claims: Embecta’s CEO and CFO Allegedly Certified Misleading Guidance That Cost Shareholders $5.35 Per Share
NEW YORK, Aug. 13, 2026 /PRNewswire/ — SueWallSt alerts investors in Embecta Corp. (NASDAQ: EMBC) of a pending securities class action naming two senior executives as individual defendants for their alleged role in disseminating misleading fiscal year 2026 guidance. Class Period: November 25, 2025 through May 4, 2026. Check if you might be able to recover your investment losses or contact Joseph E. Levi, Esq. at [email protected] | (888) SueWallSt.
Embecta shares collapsed 57.8%, falling $5.35 per share to $3.90, after the Company revealed its U.S. business had deteriorated far beyond what management had publicly represented. The Court has set August 17, 2026 as the deadline to apply for lead plaintiff appointment.
The Named Individual Defendants
The securities action identifies two officers who allegedly possessed the authority to control Embecta’s SEC filings, earnings calls, and investor presentations:
- Devdatt Kurdikar, President, Chief Executive Officer, and Director, who characterized Embecta’s pen needle business as “incredibly resolute” at the January 2026 J.P. Morgan Healthcare Conference and reaffirmed full-year guidance on February 5, 2026
- Jacob P. Elguicze, Senior Vice President and Chief Financial Officer, who reaffirmed revenue guidance of $1.071 billion to $1.093 billion and adjusted EPS of $2.80 to $3.00 during the Q1 2026 earnings call
Both executives are alleged to have had access to material non-public information about deteriorating U.S. pen needle market conditions, competitive share loss at a single major customer, and shifting patient purchasing patterns that rendered the Company’s guidance unattainable.
Section 20(a) Control Person Framework
The complaint asserts claims under Section 20(a) of the Securities Exchange Act, which imposes liability on individuals who controlled the entity that committed the primary violation. The action alleges that Kurdikar and Elguicze possessed the power to direct Embecta’s public communications and were provided with copies of the Company’s reports and press releases prior to issuance. As controlling persons, they allegedly had the ability to prevent the dissemination of misleading statements or to cause them to be corrected.
Sarbanes-Oxley Certification Obligations
As CEO and CFO, both defendants were required to personally certify Embecta’s periodic SEC filings under Sections 302 and 906 of the Sarbanes-Oxley Act. These certifications attest that:
- Financial statements fairly present, in all material respects, the Company’s financial condition and results of operations
- The signing officer has reviewed the report and it does not contain untrue statements of material fact
- The signing officer has disclosed any material changes in internal controls
The complaint contends that both executives knew or recklessly disregarded that Embecta’s fiscal guidance was materially misleading given the significant U.S. market weakness already affecting operations.
Scienter Allegations
The action alleges that the individual defendants knew adverse facts had not been disclosed to the investing public. Specifically, the lawsuit charges that management reaffirmed guidance on February 5, 2026, while U.S. pen needle share loss was already concentrating at a single customer and retail channel volumes were softening. Weeks earlier, Kurdikar had described the pen needle business as “incredibly resolute” at the J.P. Morgan conference.
“Corporate officers have a duty to ensure their companies’ public statements are accurate and complete. When executives certify financial guidance under Sarbanes-Oxley while allegedly aware of material contrary information, the law provides shareholders with recourse.” — Joseph E. Levi, Esq.
Submit your information here or call (888) SueWallSt.
WHY SUEWALLST: SueWallSt is powered by Levi & Korsinsky LLP. Levi & Korsinsky LLP has established itself as a nationally-recognized securities litigation firm that has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. The firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services’ Top 50 Report as one of the top securities litigation firms in the United States.
Frequently Asked Questions About the EMBC Lawsuit
Q: Who are the defendants named in the EMBC lawsuit? A: The complaint names Embecta Corp. and individual defendants Devdatt Kurdikar (CEO) and Jacob P. Elguicze (CFO), who signed SEC filings and made public statements during the Class Period. Both are alleged to be controlling persons under Section 20(a) of the Exchange Act.
Q: What is the EMBC lead plaintiff deadline? A: The deadline to apply for lead plaintiff appointment is August 17, 2026. This deadline applies only to investors seeking to serve as lead plaintiff. Class members who do not apply may still participate in any recovery without taking action before this date.
Q: What do EMBC investors need to do right now? A: Investors may gather brokerage records showing purchase dates, share quantities, and prices paid. Contact SueWallSt, a brand of Levi & Korsinsky LLP, for a no-cost, no-obligation case evaluation at [email protected] or (212) 363-7500. No immediate action is required to remain eligible as an absent class member.
Q: What if I already sold my EMBC shares — can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold them. Investors who bought during the class period and sold at a loss may still participate.
Q: Do I need to go to court or give testimony? A: No. The overwhelming majority of class members never appear in court or give depositions. You submit a claim form to receive your portion of recovery.
Q: What does it cost me to participate? A: Nothing. Securities class actions are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
[email protected]
Tel: (888) SueWallSt
Fax: (212) 363-7171
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SOURCE SueWallSt.com
