Shareholder Alert: Robbins LLP Informs Investors of the West Pharmaceutical Services, Inc. Class Action Lawsuit
Shareholder Alert: Robbins LLP Informs Investors of the West Pharmaceutical Services, Inc. Class Action Lawsuit |
| [07-May-2025] |
SAN DIEGO, May 7, 2025 /PRNewswire/ -- Robbins LLP informs stockholders that a class action was filed on behalf of all persons and entities that purchased or otherwise acquired West Pharmaceutical Services, Inc. (NYSE: WST) common stock between February 16, 2023 and February 12, 2025. West is a medical supplies company that specializes in the development, manufacture, and distribution of elastomer-based supplies for the containment and administration of injectable drugs.
For more information, submit a form, email attorney Aaron Dumas, Jr., or give us a call at (800) 350-6003. The Allegations: Robbins LLP is Investigating Allegations that West Pharmaceutical Services, Inc. (WST) Misled Investors Regarding the Company's Business Prospects According to the complaint, during the class period, defendants failed to disclose that: (a) despite claiming strong visibility into customer demand and attributing headwinds to temporary COVID-related product destocking, West was in fact experiencing significant and ongoing destocking across its high-margin HVP portfolio; (b) West's SmartDose device, which was purportedly positioned as a high-margin growth product, was highly dilutive to the Company's profit margins due to operational inefficiencies; (c) these margin pressures created the risk of costly restructuring activities, including the Company's exit from continuous glucose monitoring ("CGM") contracts with long-standing customers; and (d) as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects were materially false and/or misleading or lacked a reasonable basis. Plaintiff alleges that the truth about this fraud was revealed over a series of disclosures culminating on February 13, 2025, when West issued extremely weak 2025 revenue and earnings forecasts. West attributed the disappointing guidance in part to CM headwinds, including the loss of two major CGM customers that had begun transitioning to in-house manufacturing of next-generation devices after West "made the decision to not participate going forward as our financial thresholds cannot be achieved." West also revealed that its SmartDose wearable injector devices would be "margin dilutive" in 2025 and that it would be "taking steps to improve [its SmartDose] economics, and all options are on the table." On this news, West's stock dropped $123.17 per share, a decline of approximately 38%, to close at $199.11 on February 13, 2025. What Now: You may be eligible to participate in the class action against West Pharmaceutical Services, Inc. Shareholders who want to serve as lead plaintiff for the class are required to file their papers with the court by July 7, 2025. The lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here. All representation is on a contingency fee basis. Shareholders pay no fees or expenses. About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. To be notified if a class action against West Pharmaceutical Services, Inc. ettles or to receive free alerts when corporate executives engage in wrongdoing, sign up for Stock Watch today. Attorney Advertising. Past results do not guarantee a similar outcome.
SOURCE Robbins LLP | ||
Company Codes: NYSE:WST |
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