PODD Shareholder Alert: Investors With Losses May Seek to Lead the Class Action in Insulet Corporation Securities Lawsuit - Contact Levi & Korsinsky

Insulet Promoted Its Manufacturing Quality and Omnipod 5 Growth  — Then Two Recalls Affecting 7 Million Pods Revealed Alleged Manufacturing Deficiencies

NEW YORK, July 22, 2026 /PRNewswire/ -- On one side: a CEO declaring Insulet produced "tens of millions of Pods with high-quality medical-grade quality at consumer electronic scale." On the other: approximately 7 million Pods subject to Medical Device Corrections after manufacturing issues created risks of insulin under-delivery, while shareholders watched PODD plummet from $236 to $146 per share.

Find out if you qualify to recover losses from PODD. You may also contact Joseph E. Levi, Esq. at [email protected] or (212) 363-7500.

Insulet's stock declined approximately $24 per share cumulatively following the two corrective disclosures. The lead plaintiff deadline is August 31, 2026.

The Promise

Throughout 2025 and into early 2026, the Company's leadership projected an image of manufacturing excellence. During the FY 2024 earnings call, management stated it had taken "years to build a patch pump product at scale with quality, high yield, safety." By August 2025, the message escalated: the Company had "pioneered advanced automation" and built a "robust and secure global supply chain to deliver tens of millions of complex electromechanical devices per year at medical standards." In February 2026, management declared the Company produced pods "with high-quality medical-grade quality at consumer electronic scale" and pointed to improving productivity at its Acton, Massachusetts facility.

SEC filings reinforced the narrative, with the Company's FY 2024 and FY 2025 10-K filings both stating that its Quality team "inspects and tests our products at various steps in the manufacturing cycle to facilitate compliance with our specifications."

The Reality

The complaint alleges these assurances concealed deficient manufacturing controls at the Acton facility:

• March 12, 2026: Insulet initiated its first voluntary Medical Device Correction for Omnipod 5 Pods after identifying pods with "a small tear in the internal tubing that delivers insulin." PODD fell $16.23 per share (6.88%) the next trading day.
• May 26, 2026: A second, far larger MDC covered Omnipod 5, Omnipod Dash, and legacy Omnipod Eros Pods. Approximately 7 million Pods were affected, representing 8.5% of 2025 global production. PODD dropped another $7.79 per share (5.07%).
• Both MDCs stemmed from the same root cause: "cannula tears associated with cannula handling at the Company's Acton, Massachusetts facility."
• After the first recall, management characterized the problem as affecting "only a very small number of pods" and assured investors that non-recalled pods were "very safe to use." Two months later, 7 million more pods were recalled for the identical defect.

The Numbers: Promised vs. Actual

What the Lawsuit Alleges About the Gap

The securities action contends that the Company's manufacturing controls were deficient throughout the Class Period, and that management knew or recklessly disregarded this reality while making public assurances about quality and safety. BTIG reduced its valuation multiple from approximately 4.5x to 4x, citing "continued negative investor sentiment" and "risk of reputation damage." Goldman Sachs wrote that "referencing back to the March MDC" did not "sufficiently capture the magnitude of the quality issues."

"Companies that make specific promises to investors about future performance have an obligation to disclose known risks to those projections. The contrast between Insulet's repeated manufacturing quality assurances and the scope of the resulting recalls raises serious questions for shareholders." — Joseph E. Levi, Esq.

LEAD PLAINTIFF DEADLINE: August 31, 2026

Speak with an attorney about recovering your PODD investment losses or call (212) 363-7500.

Levi & Korsinsky, LLP, Top 50 securities litigation firm (ISS, seven consecutive years). Over 70 professionals. Hundreds of millions recovered for investors.

Frequently Asked Questions About the PODD Lawsuit

Q: What specific misstatements does the PODD lawsuit allege? A: The complaint alleges Insulet Corporation made materially false or misleading statements regarding its manufacturing quality controls, product safety, and the scope of defects in its Omnipod insulin delivery systems during the Class Period from February 21, 2025 through May 26, 2026. When two Medical Device Corrections revealed systemic cannula tear defects, the stock price declined sharply.

Q: How much did PODD stock drop? A: Shares fell approximately 6.88% ($16.23 per share) after the first recall on March 12, 2026, and an additional 5.07% ($7.79 per share) after the second recall on May 26, 2026. Cumulatively, PODD declined from approximately $236 to $146 per share across the two corrective disclosures.

Q: What is the PODD lead plaintiff deadline? A: The deadline to apply for lead plaintiff appointment is August 31, 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 if I already sold my PODD 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: 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.

Q: What court was the PODD class action filed in? A: The case was filed in the United States District Court for the District of Massachusetts, governed by the Private Securities Litigation Reform Act of 1995.

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