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WST INVESTOR NOTICE: West Pharmaceutical Services, Inc. Investors with Substantial Losses Have Opportunity to Lead Class Action Lawsuit
WSTWest Pharmaceutical(WST) Prnewswire·2025-05-12 09:05

Core Viewpoint - The West Pharmaceutical Services, Inc. is facing a class action lawsuit alleging violations of the Securities Exchange Act of 1934, with claims of misleading statements and operational inefficiencies impacting financial performance [1][3][4]. Group 1: Class Action Lawsuit Details - The class action lawsuit is titled New England Teamsters Pension Fund v. West Pharmaceutical Services, Inc., and covers purchasers of common stock between February 16, 2023, and February 12, 2025 [1]. - Investors have until July 7, 2025, to seek appointment as lead plaintiff in the lawsuit [1]. - The lawsuit alleges that West Pharmaceutical made false statements regarding customer demand and the performance of its high-margin products [3]. Group 2: Allegations Against West Pharmaceutical - The lawsuit claims that West Pharmaceutical was experiencing significant destocking in its High-Value Products portfolio, contrary to its public statements [3]. - The SmartDose device, which was expected to be a high-margin growth product, is alleged to have caused profit margin dilution due to operational inefficiencies [3]. - The company’s exit from continuous glucose monitoring contracts is cited as a risk stemming from margin pressures [3]. Group 3: Financial Impact and Stock Performance - On February 13, 2025, West Pharmaceutical issued a revenue forecast of 2.88billionto2.88 billion to 2.91 billion, which was significantly below market expectations [4]. - The disappointing guidance was attributed to the loss of two major customers transitioning to in-house manufacturing and the decision not to participate in future contracts [4]. - Following the announcement, West Pharmaceutical's stock price fell by more than 38% [4].