The lawsuit, filed in the U.S. District Court for the District of New Jersey under the caption Apitz-Grossman v. Embecta Corp., accuses the company and its senior executives of violating the Securities Exchange Act of 1934. According to the complaint, Embecta had previously touted the resilience of its insulin pen portfolio, describing a slight positive trend in prescriptions. However, the company’s Q2 2026 earnings report revealed a starkly different reality: significant share loss to competitors and widespread market softness in the retail channel.

On May 5, 2026, the company’s share price plummeted from $9.25 to $3.90, wiping out more than half of its value in a single session. Alongside the disappointing financial results and reduced guidance, Embecta slashed its quarterly dividend from $0.15 to $0.01 per share. Investors seeking to participate in the litigation as lead plaintiffs have until August 17, 2026, to petition the court. The firm representing the class, Bleichmar Fonti & Auld LLP, is handling the case on a contingency basis.