Grabar Law Office is investigating whether certain officers and directors of Embecta Corp. (NASDAQ: EMBC) (“Embecta” or the “Company”) breached their fiduciary duties owed to the Company and its shareholders.

Embecta is a global medical device company focused on providing products and solutions for people living with diabetes, including insulin injection and pen needle products.

What is the Investigation’s Focus?

Grabar Law Office is investigating allegations that Embecta's officers and directors failed to maintain appropriate oversight concerning the Company's business operations, sales performance, forecasting processes, internal controls, and public disclosures.

If you have held Embecta Corp. (NASDAQ: EMBC) shares since prior to November 25, 2025, you can seek corporate reforms, the return of funds back to the company, and a court approved incentive award at no cost to you whatsoever. 

Why? According to publicly filed allegations, Embecta repeatedly reaffirmed fiscal 2026 guidance and emphasized the stability and resilience of its pen needle business while allegedly failing to disclose adverse trends affecting that segment.

The investigation concerns whether Embecta's directors and officers:

• Failed to adequately oversee the Company's core pen needle business;
• Failed to maintain effective systems for identifying and reporting adverse business trends;
• Failed to ensure that the Company maintained reasonable forecasting and guidance procedures;
• Caused or permitted the dissemination of materially misleading statements concerning the Company's business performance and prospects;
• Failed to provide shareholders with accurate information regarding competitive pressures, customer concentration issues, market softness, pricing pressure, and sales trends affecting the Company's operations; and
• Exposed Embecta to substantial legal, financial, and reputational harm.

May 2026 Guidance Reduction and Stock Price Decline

On May 5, 2026, Embecta announced second quarter fiscal 2026 results that were significantly below prior expectations. The Company disclosed that revenue had declined substantially and reduced its fiscal year 2026 guidance.

Embecta attributed the disappointing results primarily to weakness in its U.S. business, including share loss within its pen needle product category, softness in market volumes, pricing pressures, inventory reductions at certain accounts, and other adverse market dynamics.

Following these disclosures, Embecta's stock price fell dramatically, declining from $9.25 per share on May 4, 2026 to $3.90 per share on May 5, 2026, representing a decline of more than 57% in a single trading session.

Potential Corporate Governance Issues

The investigation is focused on whether Embecta's board and senior management properly discharged their fiduciary obligations by:

• Monitoring and evaluating competitive developments affecting the Company's principal product categories;
• Assessing customer concentration and market-share risks;
• Maintaining effective disclosure controls and procedures;
• Ensuring that public statements concerning the Company's guidance and outlook were accurate and complete;
• Implementing adequate systems to identify and escalate material business risks; and
• Protecting shareholder interests through effective corporate oversight.

Long-Term Shareholders Are Encouraged to Contact Grabar Law Office

If you are a current Embecta shareholder, have continuously held Embecta shares since before November 25, 2025, or possess information concerning the matters under investigation, you may contact Grabar Law Office to discuss your rights and potential claims.

Shareholders may be able to pursue claims on behalf of Embecta against officers and directors responsible for alleged misconduct and seek corporate governance reforms designed to improve oversight, accountability, and shareholder value as well as a court approved incentive award at no cost to them whatsoever.

About Grabar Law Office

Grabar Law Office represents institutional and individual investors in shareholder derivative litigation, securities litigation, corporate governance matters, and antitrust litigation nationwide. The firm has extensive experience prosecuting claims involving breaches of fiduciary duty, failures of oversight, misleading disclosures, inadequate internal controls, and corporate governance failures.

For additional information concerning this investigation, please contact:

Joshua H. Grabar, Esq.
Grabar Law Office
One Liberty Place
1650 Market Street, Suite 3600
Philadelphia, Pennsylvania 19103
Telephone: (267) 507-6085
Email: jgrabar@grabarlaw.com
Website: www.grabarlaw.com

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