Levi & Korsinsky Reminds Embecta Corp. Investors of the Pending Class Action Lawsuit With a Lead Plaintiff Deadline of August 17, 2026 - EMBC

Notice to Pension Funds, Asset Managers, and Fiduciaries Holding Embecta Corp. Shares: $5.35 Per-Share Loss Raises Lead Plaintiff Considerations for Institutional Holders

NEW YORK, Aug. 5, 2026 /PRNewswire/ -- Institutional investors holding positions in Embecta Corp. (NASDAQ: EMBC) during the period November 25, 2025 through May 4, 2026 may wish to evaluate lead plaintiff opportunities in a pending securities class action. Request an institutional investor loss assessment. You may also contact Joseph E. Levi, Esq. at [email protected] or (212) 363-7500.

Embecta shares lost $5.35 per share on May 5, 2026, falling from $9.25 to $3.90, a single-day decline of 57.8%. The lead plaintiff deadline is August 17, 2026.

Notice to Institutional Holders

A securities class action has been filed in the United States District Court for the District of New Jersey alleging that Embecta and certain senior officers made materially misleading statements about the Company's fiscal year 2026 revenue guidance and U.S. pen needle business strength. As alleged in the action, management reaffirmed revenue guidance of $1.071 billion to $1.093 billion through February 2026 while the Company's U.S. business was experiencing significant share loss at a major customer and softening retail channel volumes. The corrective disclosure on May 5, 2026 slashed revenue guidance to $1.015 billion to $1.035 billion and cut the quarterly dividend from $0.15 to $0.01 per share.

Fiduciary Obligations and Recovery Options

Institutional holders with fiduciary duties should consider the following:

• Pension funds, endowments, and asset managers that purchased EMBC shares during the Class Period may hold claims on behalf of beneficiaries that carry independent fiduciary evaluation obligations
• Lead plaintiff appointment provides direct oversight of litigation strategy, settlement negotiations, and counsel selection under the Private Securities Litigation Reform Act
• Institutions with the largest documented losses receive priority consideration for lead plaintiff appointment, providing meaningful influence over case direction
• Participation as a class member requires no upfront cost, no retainer, and no out-of-pocket expense; securities class actions operate on a contingency basis
• Fiduciaries who fail to evaluate potential recovery claims risk questions about whether they fulfilled their duty to maximize portfolio value for beneficiaries
• The dividend reduction from $0.15 to $0.01 per share represents an additional income loss for yield-oriented portfolios beyond the capital depreciation

Contact us for institutional recovery options or call (212) 363-7500.

Portfolio Impact Assessment

"Institutional investors play a critical role in securities class actions. Their participation ensures robust representation and maximizes potential recovery for the entire class, particularly in cases like Embecta where the magnitude of the guidance revision and resulting losses warrant serious institutional attention," stated Joseph E. Levi, Esq.

The complaint contends that Embecta's adjusted EPS guidance was cut from $2.80-$3.00 to $1.55-$1.75, a reduction of approximately 40%. Free cash flow guidance was similarly reduced from $180 million-$200 million to $95 million-$105 million. For institutions that sized positions based on management's repeated reaffirmation of original guidance, the magnitude of the revision represents a fundamental repricing of the investment thesis.

Case Summary

The action asserts claims under Section 10(b) of the Securities Exchange Act and Rule 10b-5, as well as Section 20(a) control person liability against individual defendants. The class period runs from November 25, 2025 through May 4, 2026.

INSTITUTIONAL INVESTOR REPRESENTATION -- Levi & Korsinsky, LLP provides sophisticated counsel to institutional investors evaluating lead plaintiff opportunities. The firm has recovered hundreds of millions of dollars. Ranked among ISS Top 50 for seven consecutive years. The Court has set August 17, 2026 as the deadline to apply for lead plaintiff appointment.

Frequently Asked Questions About the EMBC Lawsuit

Q: Who is eligible to join the EMBC investor lawsuit? A: Investors who purchased EMBC stock or securities between November 25, 2025 and May 4, 2026 and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses, not on whether you still hold the shares.

Q: What is the EMBC lead plaintiff deadline? A: The deadline to apply for lead plaintiff appointment is August 17, 2026. This deadline applies only to investors seeking to serve as lead plaintiff. Class members who do not apply may still participate in any recovery without taking action before this date.

Q: What is a lead plaintiff and why does it matter? A: A lead plaintiff is the investor appointed by the court to represent the entire class. Lead plaintiffs are typically investors with the largest documented losses. Being appointed does not increase individual recovery but gives direct oversight of how the case is run.

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.

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: What documents do I need to make a claim? A: Brokerage statements or trade confirmations showing purchase dates, share quantities, prices paid, and any subsequent sale dates and prices.

Q: Has Levi & Korsinsky handled similar cases before? A: Yes, including securities class actions involving revenue inflation, earnings guidance fraud, dividend misrepresentation, and executive misconduct across numerous industries.

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