The legal action, filed by Robbins LLP, centers on allegations that Insulet failed to disclose defective manufacturing controls. Plaintiffs contend that these internal failures created significant regulatory and safety risks that were hidden from the market. The complaint asserts that these omissions rendered the company's public disclosures materially false and misleading throughout the specified period.

The company’s stock price suffered two notable declines following public admissions of product issues. On March 12, 2026, Insulet announced a voluntary medical device correction for specific Omnipod 5 Pods, causing shares to drop 6.88%. A subsequent correction announced on May 26, 2026—affecting the Omnipod 5, Omnipod Dash, and Omnipod Eros lines due to potential insulin under-delivery—triggered a further 5.07% decline. Investors seeking to serve as lead plaintiff in the case must submit their filings to the court by August 31, 2026.