Proposed investor suit covers Embecta securities bought from Nov. 25, 2025 to May 4, 2026 after the company cut fiscal 2026 EPS guidance, citing weak pen needle sales, slashed its dividend and shares plunged.
Hagens Berman said it is investigating Embecta Corp. in connection with a proposed securities class action covering investors who bought or acquired Embecta securities between November 25, 2025 and May 4, 2026, with an Aug. 17, 2026 deadline to seek lead-plaintiff status. The complaint alleges Embecta misled investors by repeatedly portraying its pen needle business as stable and resilient and by reaffirming fiscal 2026 guidance, including adjusted EPS of $2.80 to $3.00 and its plan to maintain the dividend. On May 5, 2026, Embecta disclosed a sharp second-quarter miss, reported adjusted EPS of $0.27, cut full-year adjusted EPS guidance to $1.55 to $1.75, reduced its dividend by 93% to $0.01, and said weakness in pen needle sales had hurt results. The stock then fell more than 57% to $3.90, while one account described the guidance cut as about 43% at the midpoint and another as 46%.