West Pharmaceutical(US:WST) GlobeNewswire News Roomยท2025-06-02 16:00Core Viewpoint - West Pharmaceutical Services, Inc. is facing a class action lawsuit due to significant stock price decline following disappointing revenue and earnings forecasts, attributed to operational challenges and customer losses [2][3]. Group 1: Company Performance - On February 13, 2025, West issued disappointing revenue and earnings forecasts for 2025, citing Contract Manufacturing headwinds and the loss of two major continuous glucose monitoring customers [2]. - The company's SmartDose wearable injector devices are expected to be "margin dilutive" in 2025, prompting the need for steps to improve its economics [2]. - Following the announcement, West's stock price fell by $123.17, or 38.2%, closing at $199.11 per share [2]. Group 2: Lawsuit Details - The class action lawsuit alleges that West made materially false and misleading statements throughout the class period, failing to disclose significant operational issues [3]. - Specific allegations include ongoing destocking across West's high-margin HVP portfolio and operational inefficiencies related to the SmartDose device, which was expected to be a high-margin growth product [3]. - The lawsuit claims that these margin pressures could lead to costly restructuring activities, including exiting contracts with long-standing customers in the continuous glucose monitoring sector [3].