The complaint, filed in the U.S. District Court for the District of New Jersey under the caption Apitz-Grossman v. Embecta Corp., et al., claims the company violated the Securities Exchange Act of 1934. According to the filing, Embecta executives repeatedly touted the strength and positive trends of their insulin pen portfolio, even as the business faced mounting market softness and declining volume in retail channels.

The facade crumbled on May 5, 2026, when Embecta reported second-quarter results that fell well below financial guidance. The company disclosed that it had lost share within its core product category—primarily due to a single customer—and consequently slashed its quarterly dividend from $0.15 to $0.01 per share. This revelation triggered a sell-off that pushed the stock price from $9.25 to $3.90 in a single session.

Bleichmar Fonti & Auld LLP, the firm representing the class, has set an August 17, 2026, deadline for investors to apply for lead plaintiff status. The litigation seeks to address losses incurred by shareholders who purchased stock during the period when the company allegedly misrepresented its market position.