Hagens Berman reviews Embecta after class action over insulin pen needle business

By Atlas Watchline Staff · Legal · August 10, 2026

Hagens Berman says it is reviewing Embecta Corp. after a New Jersey class action alleged the company misled investors about its insulin pen needle business.

Hagens Berman said it is investigating Embecta Corp. after a class action filed in U.S. District Court for the District of New Jersey alleged the company misled investors about the stability of its insulin pen needle business.

The complaint says Embecta and its management described the pen needle portfolio as “stable,” “resilient” and “incredibly resolute” while, plaintiffs allege, the business was facing competitive share loss and softer retail-channel volume. The release says investors who bought shares during the class period could have suffered losses tied to those disclosures.

According to the PR Newswire release, the class period runs from Nov. 25, 2025, through May 4, 2026, with a lead plaintiff deadline of Aug. 17, 2026. The filing claims the company experienced significant competitive share loss, including at a major customer, and broader market volume softness in the retail channel, while management allegedly continued to reaffirm positive financial guidance.

The release says the alleged truth emerged on May 5, 2026, when Embecta reported second-quarter fiscal 2026 results. It says the company disclosed a large revenue decline, cut full-year 2026 adjusted earnings per share guidance by about 43% at the midpoint, and reduced its quarterly dividend from $0.15 to $0.01 per share. The release also says Embecta’s stock fell 57.8% in a single trading day after the announcement.

Reed Kathrein is identified in the release as the Hagens Berman partner leading the investigation. In a quoted statement, Kathrein said the firm is examining whether Embecta’s assurances were misleading in light of the later-reported revenue decline and market volume softness.

The release also says whistleblowers with non-public information may consider the SEC Whistleblower program, which it describes as offering awards of up to 30% of a successful SEC recovery.

The release says the next step is tied to the Aug. 17 lead plaintiff deadline. It says affected shareholders may contact the firm as the litigation moves forward.

Sources

• PR Newswire release: “EMBC Investor Alert: Embecta Corp. Investors with Substantial Losses Have Opportunity to Lead Class Action Lawsuit”

Editorial note: This article was prepared with AI assistance and includes source attribution for reader review.

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