Law Firm Investigates Embecta Corp. for Alleged Securities Law Violations
A law firm has initiated an investigation into Embecta Corp., alleging violations of securities laws and misrepresentation of its insulin pen needle business stability. This follows a class-action lawsuit.
San Francisco, CA – July 21, 2026 – National shareholder rights law firm Hagens Berman is investigating Embecta Corp. (NASDAQ: EMBC) for alleged violations of federal securities laws. The investigation stems from a recently filed class-action lawsuit in the U.S. District Court for the District of New Jersey.
The lawsuit alleges that Embecta and its management misled investors regarding the stability and commercial strength of its core insulin pen needle business. The complaint contends that throughout the class period (November 25, 2025 – May 4, 2026), Embecta repeatedly assured investors that its pen needle portfolio was "stable," "resilient," and "incredibly resolute."
Plaintiffs allege these statements were false and misleading because the company was experiencing significant competitive share loss and softness in the retail channel volume, issues allegedly known to management. The truth emerged on May 5, 2026, when Embecta announced its second-quarter fiscal 2026 financial results. The company reported a substantial revenue decline, citing U.S. pen needle market headwinds that contradicted prior assurances.
In response to the news, Embecta slashed its full-year 2026 adjusted EPS guidance by approximately 43% and drastically reduced its quarterly dividend by 93%. Embecta's stock price plummeted 57.8% on a single trading day. "We are investigating whether Embecta's assurances were misleading, given that the company later reported a significant revenue decline and cited market volume softness," said Reed Kathrein, the Hagens Berman partner leading the investigation.