West Pharmaceutical Services, Inc. Securities Lawsuit Investigation

Shamis & Gentile P.A., a law firm that advocates for investors who are victims of securities fraud, is investigating potential claims against West Pharmaceutical Services, Inc. (WST)

If you have held West Pharmaceutical Services since at least February 2023, you may be able to seek corporate reforms, the return of funds back to the Company, and a court approved incentive award for you, all at absolutely no cost.

About West Pharmaceutical Services

West Pharmaceutical Services is a medical supplies company headquartered in Exton, Pennsylvania. The company is incorporated in Pennsylvania and operates as a supplier to pharmaceutical, biotechnology, and generic drug companies.

West operates through two primary segments: Proprietary Products (including packaging, containment, and delivery products like HVP components and SmartDose devices) and Contract-Manufactured Products (focusing on custom device assemblies such as CGM device components).

What's Being Investigated

The investigation focuses on whether West Pharmaceutical Services’ board of directors and senior management breached their fiduciary duties to the company and its shareholders by failing to properly oversee business risks and internal controls within its High-Value Product (HVP) and SmartDose operations.

According to allegations in a class action complaint filed May 5, 2025, West and certain executives are accused of failing to disclose material operational and financial information.

Allegations asserted by investors include:

• Significant and ongoing destocking across its high-margin HVP portfolio, despite public statements suggesting stable demand and attributing headwinds to temporary COVID-related factors.
• The SmartDose® device, promoted as a high-margin growth driver, was allegedly dilutive to profit margins due to cost overruns, production inefficiencies, and limited scalability.
• Margin pressure that raised internal concerns about possible restructuring, including the termination of contracts with major continuous-glucose-monitoring (CGM) customers.

As a result, it is alleged that the company’s public statements regarding its operations, profitability, and growth prospects may not have fully reflected underlying risks or known business challenges.

On February 13, 2025, West issued 2025 revenue and earnings forecasts that fell sharply below market expectations, citing contract manufacturing headwinds and the loss of two major CGM customers. The company also disclosed that SmartDose would be margin-dilutive in 2025 and announced plans to improve its cost structure.

Following these disclosures, West’s stock declined approximately 38%, closing at $199.11 per share; leading to significant harm to the Company and investors.

Key Timeline

• February 16, 2023:  West and senior executives allegedly began making statements emphasizing strong visibility into customer demand and continued momentum in its high-value product (HVP) portfolio.
• February 15, 2024: West discussed ‘destocking’ primarily in standard products while noting limited effects within parts of its HVP portfolio; shares fell 14% to $350.70. Investors allege these remarks minimized ongoing pressures on high-margin offerings.
• April 25, 2024: The company reported continued destocking and a 4.5% stock drop after discussing weaker product mix and lower throughput. Investors allege management downplayed the severity of inventory reductions affecting margins.
• July 25, 2024: West cut its full-year 2024 outlook, citing elevated destocking and reduced demand for HVP components. Investors allege this disclosure partially revealed earlier undisclosed weaknesses in the company’s order book.
• October 24, 2024: Executives stated that customer trends were stabilizing while acknowledging persistent destocking in biologics and generics. Investors allege these statements continued to understate the extent of operational and margin challenges.
• February 13, 2025: West issued weak 2025 guidance, revealed the loss of two CGM customers, and said SmartDose would be margin-dilutive; shares plunged 38% to $199.11. Investors allege this fully revealed the impact of undisclosed customer losses and misrepresented profitability trends_._

Why Investors May Be Concerned

Stockholders allege that West’s board and management may have made misleading statements or failed to disclose adverse information about demand trends, product margins, and customer relationships.

The complaint contends that:

• The company’s disclosures about demand visibility and COVID-related destocking may have omitted ongoing, significant destocking in high-margin products.
• The SmartDose device, promoted as a high-margin product, was in fact margin-dilutive due to operational challenges.
• Board-level oversight of mission-critical risks; such as demand forecasting, product economics, and customer concentration, may have been insufficient.
• The board’s Audit Committee and executive officers may not have adequately monitored or disclosed these risks, raising questions about internal controls and oversight.

Your Rights and Next Steps

This is an active investigation into whether West Pharmaceutical Services’ board and officers may have breached their fiduciary duties or failed to provide accurate disclosures. If you owned WST shares from at least February 2023, and still hold shares today, you may have certain rights.

Potential Next Steps:

• Request company records under Pennsylvania law to investigate possible wrongdoing.
• Make a written demand on the board to address alleged misconduct before any lawsuit is filed
• Participate in a derivative action, which is a lawsuit brought by shareholders on behalf of the company to recover damages or seek governance reforms.
• Seek legal counsel to understand your rights and the procedural steps required under Pennsylvania law, including ownership and demand requirements.

It is important to act promptly, as there may be deadlines for joining any class action or making a demand on the board.

How Shareholders Can Take Action

Securities investigations are time-sensitive. If you purchased West Pharmaceutical Services stock since at least February 2023, you may be eligible to join this investigation and potentially recover damages or seek governance changes on behalf of the company.

Please complete the form below to join the investigation.