Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against West Pharmaceutical Services, Inc. (WST)

/EIN News/ -- NEW YORK, May 06, 2025 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Eastern District of Pennsylvania on behalf of all persons or entities who purchased or otherwise acquired West Pharmaceutical Services, Inc. (“West Pharmaceutical” or the “Company”) (NYSE: WST) securities between February 16, 2023 and February 12, 2025, both dates inclusive (the “Class Period”).

The Complaint alleges that Defendants failed to disclose that: (a) despite claiming strong visibility into customer demand and attributing headwinds to temporary COVID-related product destocking, the Company was in fact experiencing significant and ongoing destocking across its high-margin High-Value Products portfolio; (b) the Company’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 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.

The truth was revealed over a series of disclosures culminating on February 13, 2025, when the Company issued extremely weak 2025 revenue and earnings forecasts. Th Company attributed the disappointing guidance in part to contract manufacturing headwinds, including the loss of two major continuing glucose monitoring customers that had begun transitioning to in-house manufacturing of next-generation devices after the Company “made the decision to not participate going forward as our financial thresholds cannot be achieved.” The Company 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, the Company’s stock dropped $123.17 per share, a decline of 38 percent, to close at $199.11 on February 13, 2025.

Investors who purchased or otherwise acquired shares of West Pharmaceutical should contact the Firm prior to the July 7, 2025 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.

Please visit our website at http://www.gme-law.com for more information about the firm.