Peiffer Wolf is investigating Embecta Corp. (NASDAQ: EMBC), its CEO Devdatt Kurdikar and CFO Jacob P. Elguicze, for potential violations of SEC Rule 10b-5 and related securities laws in connection with alleged material misstatements concerning the company’s revenue guidance,the financial performance of its core pen needle business and competitive conditions affecting that business.
If you invested in Embecta securities between November 25, 2025, and May 4, 2026 (the “Class Period”) and suffered losses, Contact Us as soon as possible for a Free Case Evaluation by filling out an online form or by calling 585-310-5140.
Important: The deadline to seek lead plaintiff status in this lawsuit is August 17, 2026.
Embecta Stock | What Happened
Embecta Corp. (“Embecta”) is a medical device company headquartered in Parsippany, New Jersey, that manufactures insulin delivery products — including pen needles, syringes, and safety injection devices — for people with diabetes. The company’s pen needle segment represents its largest revenue stream and the primary driver of its financial performance.
According to a complaint filed in the United States District Court for the District of New Jersey, Embecta and its executives made materially false and misleading statements throughout the Class Period concerning the strength and stability of the company’s pen needle business, the reliability of its revenue guidance, and the competitive dynamics facing its core product line.
The lawsuit specifically alleges:
- False and Misleading Revenue Guidance — Throughout the Class Period, Embecta repeatedly affirmed its guidance that fiscal year 2026 revenue would be flat to down approximately 2% from the prior year, and that its pen needle segment would continue to demonstrate resilience. The complaint alleges that Embecta and its officers knew, or recklessly disregarded, that this guidance was misleading and unattainable given actual conditions in the pen needle market.
- Concealment of Pen Needle Market Deterioration — The complaint alleges that Embecta publicly described its pen needle business as “incredibly resolute” and touted positive prescription trends in the weeks before the corrective disclosure. It is alleged that in reality the company was losing revenue due to the loss of a significant retail pharmacy customer, together with broader declines in demand for retail insulin pens and pen needles. These materially false and misleading statements artificially inflated the price of Embecta’s common stock, causing investors to purchase shares at prices that did not reflect the company’s true financial condition and business outlook.
Stock Price Decline and Investor Harm
On May 5, 2026, Embecta reported its second quarter fiscal year 2026 financial results, disclosing that revenue had declined more than 14%, far worse than the company’s own guidance of flat to down approximately 2%. On the news of Embecta’s lowered full-year 2026 revenue forecasts, Embecta’s stock declined approximately 57.8% per share at close on May 5, 2026 — a single-day decline of more than half the company’s market value.
Embecta Lawsuit | Legal Claims
The complaint asserts that Embecta Corp. (NASDAQ: EMBC), CEO Devdatt Kurdikar, and CFO Jacob P. Elguicze violated federal securities laws, specifically:
- Section 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5 — These provisions prohibit making materially false or misleading statements in connection with the purchase or sale of securities. The complaint alleges that Embecta and its officers made materially false and misleading statements about the company’s revenue guidance, the health of its pen needle business, and its financial performance and prospects throughout the Class Period.
- Section 20(a) of the Securities Exchange Act of 1934 (Control Person Liability) — These provisions hold control persons liable for a company’s securities law violations. The complaint names CEO Devdatt Kurdikar and CFO Jacob P. Elguicze as control persons liable for Embecta’s alleged misstatements.
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Embecta’s management allegedly continued to publicly tout the resilience of its pen needle business and reaffirm revenue guidance even as the company was experiencing a significant customer loss and deteriorating market conditions that it knew would make that guidance unattainable. When Embecta disclosed its second-quarter fiscal 2026 results and reduced its full-year revenue guidance on May 5, 2026, Embecta’s stock lost more than half its value in a single trading session, causing severe losses to investors who purchased shares during the Class Period.
Peiffer Wolf is currently investigating potential Securities Exchange Act violations involving Embecta securities. If you purchased EMBC securities during the Class Period and suffered losses, Contact Us for a Free Case Evaluation by filling out an online form or calling 585-310-5140.
Important: The deadline to seek lead plaintiff status in this lawsuit is August 17, 2026.
FAQ
What is the Embecta lawsuit about?
A federal securities complaint alleges that Embecta and certain officers violated SEC Rule 10b-5 by making materially false and misleading statements about the company’s revenue guidance and the financial performance of its pen needle business. Embecta’s management repeatedly described the pen needle segment as resilient and reaffirmed fiscal year 2026 guidance even as the company was experiencing a significant customer loss and broader market softness that, according to the complaint, it knew would cause it to miss that guidance by a wide margin. When Embecta disclosed the true state of its business on May 5, 2026 — reporting second-quarter revenue down more than 14% year over year while lowering its full-year fiscal 2026 revenue guidance from flat to down approximately 2% — the company’s stock fell approximately 57.8% in a single day.
Who is included in the class, and what do investors need to have experienced?
The Class Period is November 25, 2025 through May 4, 2026. Investors who purchased or acquired Embecta common stock or other securities during the Class Period and suffered losses may be eligible to participate in the class action lawsuit. You do not need to have sold your shares to qualify — investors who still hold their shares may also be eligible.
What is the lead plaintiff deadline, and why does it matter?
The lead plaintiff deadline is August 17, 2026. Under the Private Securities Litigation Reform Act (“PSLRA”), generally the investor with the largest documented losses who files a timely motion may be appointed lead plaintiff and play a central role in directing the litigation, selecting lead counsel, and approving any settlement. Missing this deadline does not prevent you from participating in any recovery — but it does prevent you from seeking lead plaintiff appointment. We encourage investors with significant losses to contact us as soon as possible.
Do I need to have sold my shares to participate?
No. Investors who purchased Embecta securities during the Class Period and suffered losses — whether or not they have sold their shares — may be eligible to participate in the lawsuit and any recovery. If you still hold your shares, your loss is likely calculated based on the decline in the stock’s value from the price you paid.
How can I get a free case evaluation?
Peiffer Wolf is investigating claims on behalf of investors who purchased Embecta securities during the Class Period and suffered losses. You can request a Free Case Evaluation by filling out an online form or calling 585-310-5140. The case is pending in the United States District Court for the District of New Jersey. The lead plaintiff deadline is August 17, 2026.
