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Labaton Keller Sucharow LLP Announces Securities Class Action Lawsuit Filed Against West Pharmaceutical Services, Inc. and Certain of Its Executives

via Business Wire

Labaton Keller Sucharow LLP (“Labaton”) announces that, on May 5, 2025, it filed a securities class action lawsuit (the “Complaint”) on behalf of its client the New England Teamsters Pension Fund (“New England Teamsters”) against West Pharmaceutical Services, Inc. (“West” or the “Company”) (NYSE: WST) and certain West executives (collectively, “Defendants”). The action, which is captioned New England Teamsters Pension Fund v. West Pharmaceutical Services, Inc., No. 25-cv-02285 (E.D. Pa.) asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and U.S. Securities and Exchange Commission Rule 10b-5 promulgated thereunder, on behalf of all persons and entities that purchased or otherwise acquired West common stock between February 16, 2023 and February 12, 2025, inclusive (the “Class Period”).

West is a medical supplies company based in Exton, Pennsylvania that operates as a key supplier to firms in the pharmaceutical, biotechnology, and generic drug industries. The Complaint alleges that, throughout 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 High-Value Products 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 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 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 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 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 38 percent, to close at $199.11 on February 13, 2025.

If you purchased or acquired West common stock during the Class Period and were damaged thereby, you are a member of the “Class” and may be able to seek appointment as Lead Plaintiff. Lead Plaintiff motion papers must be filed no later than July 7, 2025. The Lead Plaintiff is a court-appointed representative for absent members of the Class. You do not need to seek appointment as Lead Plaintiff to share in any Class recovery in this action. If you are a Class member and there is a recovery for the Class, you can share in that recovery as an absent Class member. You may retain counsel of your choice to represent you in this action.

If you would like to consider serving as Lead Plaintiff or have any questions about this lawsuit, you may contact Connor C. Boehme, Esq. of Labaton at (212) 907-0780, or via email at cboehme@labaton.com. You can view a copy of the Complaint online here.

New England Teamsters is represented by Labaton, which represents many of the largest pension funds in the United States and internationally with combined assets under management of more than $4.5 trillion. Labaton’s litigation reputation is built on its half-century of securities litigation experience, more than ninety full-time attorneys, and in-house team of investigators, financial analysts, and forensic accountants. Labaton has been recognized for its excellence by the courts and peers, and it is consistently ranked in leading industry publications. Offices are located in New York, Delaware, London, and Washington, D.C. More information about Labaton is available at labaton.com.

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