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Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against Embecta Corp. (EMBC)

globenewswire.com
EMBC Embecta is facing a class action lawsuit alleging misleading guidance and unattainable targets. The company missed expectations, cut fiscal guidance, and saw its stock price plummet over 57% after reporting a significant revenue decline, particularly in pen needle sales.

NEW YORK, June 18, 2026 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the District of New Jersey on behalf of all persons or entities who purchased or otherwise acquired Embecta Corp. (“Embecta” or the “Company”) (NASDAQ: EMBC) securities between November 25, 2025 and May 4, 2026, inclusive (the “Class Period”).

The Complaint alleges that Defendants failed to disclose to investors that Embecta knew or recklessly disregarded that the Company’s guidance was misleading and unattainable. The Complaint alleges that Embecta touted the Company’s pen needle business as “incredibly resolute” mere weeks prior to missing expectations and cutting 2026 fiscal guidance. The Complaint continues to allege that such statements absent these material facts caused Plaintiff and other shareholders to purchase Embecta’s securities at artificially inflated prices.

The Complaint alleges that the truth emerged on May 5, 2026, when Embecta published second quarter 2026 fiscal results disclosing that the Company failed to meet its guidance for second quarter 2026 and lowered fiscal year 2026 guidance. The Complaint continues to allege that in particular, Embecta revealed that revenue declined over 14%, much higher than the guidance of flat to a decline of 2% and that the Company was lowering estimates on US performance, largely in part due to weakness in its pen needle sales.

The Complaint alleges that investors and analysts reacted immediately to Embecta’s revelation. The Complaint continues to allege that the price of Embecta’s common stock declined dramatically, from a closing market price of $9.25 per share on May 4, 2026, Embecta’s stock price fell to $3.90 per share on May 5, 2026, a decline of over 57.8% in a single day.

Investors who purchased or otherwise acquired shares of Embecta should contact the Firm prior to the August 17, 2026 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.

Please visit our website at http://www.gme-law.com for more information about the firm.