EMBC Shareholder Alert: Investors With Losses May Seek to Lead the Class Action in Embecta Corp. Securities Lawsuit - Contact Levi & Korsinsky

Embecta Promised Investors Flat-to-Down-2% Revenue and 2.80 - 3.00 EPS — Then Delivered a 17.4% Revenue Collapse and Slashed Earnings Guidance by Nearly Half

NEW YORK, July 1, 2026 /PRNewswire/ -- Levi & Korsinsky, LLP highlights the gap between Embecta Corp.'s (NASDAQ: EMBC) promises and its actual performance. A securities class action has been filed on behalf of investors who purchased EMBC securities between November 25, 2025 and May 4, 2026. Find out if you can recover your investment losses or contact Joseph E. Levi, Esq. at [email protected] or (212) 363-7500.

Shares fell 57.8% on May 5, 2026, dropping from 9.25 to 3.90. The lead plaintiff deadline is August 17, 2026.

Embecta Corp. projected 1.071 billion to 1.093 billion in fiscal year 2026 revenue. The company delivered a revised range of 1.015 billion to 1.035 billion — a 75 million shortfall. Adjusted EPS guidance of 2.80 to 3.00 became 1.55 to 1.75. Shareholders lost 5.35 per share in a single trading session.

The Promise

Between November 25, 2025 and February 5, 2026, management laid out a fiscal year 2026 outlook built on confidence. The complaint recounts that on November 25, 2025, the company issued guidance calling for adjusted constant currency revenue flat to down 2%, adjusted operating margins of 29% to 30%, adjusted EPS of 2.80 to 3.00, and free cash flow of 180 million to 200 million. On February 5, 2026, that guidance was reaffirmed, though management noted it expected to come in closer to the lower end of the ranges due to incremental U.S. headwinds.

The Reality

On May 5, 2026, Embecta reported second quarter results that shattered every projection. As detailed in the action, adjusted constant currency revenue fell 17.4% year-over-year — not the flat-to-down-2% the company had promised. The complaint chronicles that management disclosed share loss concentrated at a single customer, softening retail volumes for insulin pens and pen needles, and patient purchasing shifts to channels where Embecta does not participate.

Promise vs. Actual: By the Numbers

• Revenue guidance: Promised 1.071B— 1.093B; revised to 1.035B — a reduction of approximately $75 million
• Adjusted operating margin: Promised 29%–30%; revised to 22.25%–23.25% — nearly 700 basis points lower at midpoint
• Adjusted EPS: Promised 2.80 – 3.00; revised to – 1.75 — a cut of approximately 43% at midpoint
• Free cash flow: Promised 180M – 200M; revised to 95M – 105M — roughly half of original projections
• Quarterly dividend: Cut from 0.15 to 0.01 per share — a 93% reduction
• Pen needle revenue: Reduced by approximately $53 million from prior expectations

What the Lawsuit Alleges About the Gap

The action contends that the gap between Embecta's projections and its actual results was not the product of sudden, unforeseeable market shifts. The lawsuit asserts that U.S. pen needle weakness — including competitive share loss at a major customer and retail volume softness — was developing during the period when management reaffirmed guidance and described the pen needle business in overwhelmingly positive terms. According to the filing, shareholders purchased EMBC stock at artificially inflated prices based on guidance that the company knew or recklessly disregarded was unattainable.

"Companies that make specific promises to investors about future performance have an obligation to disclose known risks to those projections. The magnitude of the gap between Embecta's guidance and its actual results raises serious questions about what was known internally when that guidance was reaffirmed." — Joseph E. Levi, Esq.

Calculate your potential recovery in the Embecta securities action or call Joseph E. Levi, Esq. at (212) 363-7500.

LEAD PLAINTIFF DEADLINE: August 17, 2026

Levi & Korsinsky, LLP is a nationally recognized shareholder rights firm. Over the past 20 years, the firm has secured hundreds of millions of dollars for aggrieved shareholders. Ranked in ISS Top 50 for seven consecutive years.

Frequently Asked Questions About the EMBC Lawsuit

Q: What specific misstatements does the EMBC lawsuit allege? A: The complaint alleges Embecta made materially false or misleading statements regarding its fiscal year 2026 revenue guidance, the stability of its pen needle segment, and its adjusted earnings outlook during the class period. When the true state of U.S. business weakness was revealed on May 5, 2026, the stock price declined 57.8%.

Q: When did Embecta allegedly mislead investors? A: The class period runs from November 25, 2025 to May 4, 2026. During this window, management issued and reaffirmed fiscal year guidance that the lawsuit alleges was unattainable due to known U.S. market weakness.

Q: What do EMBC investors need to do right now? A: Gather brokerage records including purchase dates, share quantities, and prices paid. Contact Levi & Korsinsky for a free, no-obligation evaluation at [email protected] or (212) 363-7500. No immediate action is required to remain eligible as a class member.

Q: What if I already sold my EMBC shares — can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold them. Investors who bought during the class period and sold at a loss may still participate.

Q: Do I need to go to court or give testimony? A: No. The overwhelming majority of class members never appear in court or give depositions. You submit a claim form to receive your portion of recovery.

Q: What does it cost me to participate? A: Nothing. Securities class actions are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.

CONTACT:\

Levi & Korsinsky, LLP\

Joseph E. Levi, Esq.\

Ed Korsinsky, Esq.\

33 Whitehall Street, 27th Floor\

New York, NY 10004\

[email protected]\

Tel: (212) 363-7500\

Fax: (212) 363-7171

SOURCE Levi & Korsinsky, LLP