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

Core Viewpoint - A securities class action lawsuit has been filed against West Pharmaceutical Services, Inc. for failing to disclose significant operational issues and misleading investors regarding the company's financial health during the class period from February 16, 2023, to February 12, 2025 [1] Group 1: Allegations Against the Company - The complaint alleges that the company did not disclose ongoing destocking issues in its high-margin High-Value Products portfolio, contrary to claims of strong visibility into customer demand [2] - It is claimed that the SmartDose device, positioned as a high-margin growth product, was actually dilutive to profit margins due to operational inefficiencies [2] - The margin pressures led to risks of costly restructuring activities, including the exit from continuous glucose monitoring contracts with long-standing customers [2] - Positive statements made by the company regarding its business and prospects were materially false or misleading [2] Group 2: Impact of Disclosures - The truth about the company's financial struggles was revealed on February 13, 2025, when it issued weak revenue and earnings forecasts for 2025 [3] - The company attributed its disappointing guidance to contract manufacturing headwinds and the loss of two major glucose monitoring customers transitioning to in-house manufacturing [3] - The SmartDose wearable injector devices were indicated to be margin-dilutive in 2025, prompting the company to consider various options to improve its economics [3] - Following these disclosures, the company's stock price fell by $123.17 per share, a decline of 38%, closing at $199.11 on February 13, 2025 [3]