The litigation, spearheaded by Hagens Berman, centers on claims that Embecta management repeatedly described its pen needle portfolio as resilient and stable between November 25, 2025, and May 4, 2026. Plaintiffs contend these assurances masked significant competitive losses and declining retail market volumes that executives were aware of at the time.
The discrepancy between company guidance and operational reality became public on May 5, 2026, when Embecta reported a sharp revenue decline. The firm subsequently slashed its full-year 2026 adjusted EPS guidance by roughly 43% and cut its quarterly dividend by 93%, reducing the payout from $0.15 to $0.01 per share. These revelations triggered a 57.8% drop in Embecta stock in a single day. Reed Kathrein, a partner at Hagens Berman, is currently leading an investigation into whether these financial disclosures were deliberately misleading. Investors who held stock during the class period must act by August 17, 2026, to meet the lead plaintiff deadline.

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