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CTLT.US
id: 592

Catalent ($CTLT) $78M Investor Settlement

Eligible claimants can submit their claims for compensation.
$78,000,000
Cash Settlement
D. New Jersey
Court
23-CV-01108
Case number
08/30/2021
Class period Start
05/07/2023
Class period End
05/26/2026
Claim deadline
Catalent ($CTLT) has agreed to settle $78 million with investors to resolve claims that it overstated customer demand and financial guidance, and concealed serious production issues.

Outline:


Catalent presented itself as a key COVID-19 vaccine supplier and assured investors that demand remained strong. However, from late 2022 through 2023, the company disclosed serious manufacturing issues, elevated inventory levels, and weaknesses in internal controls. The company’s stock declined by more than 70%, leading to investor losses and a shareholder lawsuit.


Timeline:

  • Between August 2021 and November 2023: Catalent assured investors that its operations were running efficiently and its financial outlook remained strong.
  • On November 1, 2022: Catalent reduced FY23 guidance citing “macro” issues, and the stock dropped 30%.
  • On February 24, 2023: Investors filed a class action lawsuit against Catalent.
  • On April 14, 2023: The company revealed productivity challenges and inventory mismanagement. $CTLT fell another 26%.
  • On December 29, 2025: Catalent agreed to a $78M settlement to resolve all claims.

Background:


Catalent is a global drug manufacturer that gained attention during the COVID-19 pandemic for its role in vaccine production.

From August 2021 through May 2023, Catalent’s leadership told investors that demand remained strong and that manufacturing capacity was being used at near-peak levels.

In the Q2 2022 earnings call, executives said that “drug product remains in extremely high demand across the board… the pipeline outside of vaccines remains very robust … Catalent has positioned ourselves very well,” pointing to strong demand across the company’s non-COVID business.

Executives also said the company was transitioning from COVID-19 vaccine production to gene therapies and other specialty products to help offset declining pandemic-related revenue.

On November 1, 2022, Catalent reduced its fiscal 2023 guidance, citing macroeconomic conditions. Following the announcement, $CTLT fell by about 30% in one day.

Additional issues were disclosed on April 14, 2023. Catalent reported internal operational problems and higher-than-expected costs at multiple facilities, including its Harmans, Bloomington and Brussels sites. The company said these challenges would affect its third-quarter results and outlook for the full fiscal year.

Following this disclosure, the stock declined by another 26%.
After these disclosures, investors filed a lawsuit, claiming the company misrepresented its operations and withheld information about internal issues.

What Can Investors Expect Now?


Catalent ($CTLT) has agreed to settle $78 million with investors to resolve claims that it overstated customer demand and financial guidance and concealed serious production issues.

If you were damaged due to this situation, you can file for a payout and get your share of the settlement.
Case Type
US Securities Class Action
Case Status
Accepting Claims
Alleged Offence
Misleading Statements, 
Financial Misrepresentation, 
Fraud, 
Failure to Disclose, 
Malpractice, 
Negligence, 
Breach of Fiduciary duty, 
Omissions
Suspected Party
Directors, 
Management, 
Shareholder, 
Investment Bank, 
Service Provider
Security Type
Stocks
Trade Direction
Long
Payout per Share
0.61
Filing date
02/24/2023
Lead Plaintiff Deadline
04/24/2023
Plaintiffs
City of Warwick Retirement System
Attorneys
Kessler Topaz Meltzer & Check, LLP
Defendants
John Chiminski, Alessandro Maselli, Thomas Castellano
Judge
Hon. Zahid N. Quraishi
Administrator
EPIQ
Settlement agreement date
2025-12-23
Court hearing date
06/10/2026
Exclusion deadline
05/20/2026
Objection deadline
05/20/2026
Attorney fee
$21,500,000
Trades matching type
FIFO

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