Levi & Korsinsky, LLP notifies investors that Eric Benjamin, Insulet Corporation’s (NASDAQ: PODD) former Executive Vice President and Chief Operating Officer, is named as a defendant in a securities class action alleging he made false statements about Omnipod product safety while selling $3.7 million in company stock during the Class Period. Find out if you can recover losses tied to executive misconduct. You may also contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com or (212) 363-7500.
Investors who purchased PODD securities between February 21, 2025 and May 26, 2026 suffered as the stock declined approximately $24 per share cumulatively across the two immediate corrective disclosures that revealed manufacturing issues affecting Omnipod products at Insulet’s Acton, Massachusetts facility. The lead plaintiff deadline is August 31, 2026.
Benjamin’s Role During the Class Period
Eric Benjamin served as Insulet’s Chief Product and Customer Experience Officer from the start of the Class Period through August 25, 2025, when he was promoted to Executive Vice President and Chief Operating Officer.
During Insulet’s Q2 2025 Earnings Call on August 7, 2025, Benjamin told investors that “Omnipod 5 is safe, effective, understood to be really easy to use,” directly linking the product’s alleged safety profile to accelerating customer conversions. The action contends this statement was materially misleading because Insulet’s manufacturing controls at its Acton facility were already defective, creating a foreseeable risk that Omnipod products would require corrective action.
$3.7 Million in Stock Sales While Safety Claims Continued
The complaint charges that Benjamin sold 12,594 shares of Insulet common stock during the Class Period, collecting approximately $3.7 million in proceeds. These sales represent the largest individual defendant stock dispositions alleged in the case:
- Benjamin sold 12,594 shares for approximately $3.7 million, the largest insider sales among all individual defendants
- Former CEO Hollingshead sold 6,821 shares for approximately $1.8 million
- Former CFO Chadwick sold 1,765 shares for approximately $441,691
- Total insider proceeds during the Class Period exceeded $5.9 million across these three defendants
- Benjamin’s sales alone accounted for more than 62% of all individual defendant stock sale proceeds alleged
Benjamin’s Alleged Liability Under Section 20(a)
As a named individual defendant, the lawsuit asserts Benjamin possessed the power and authority to control the contents of Insulet’s SEC filings, press releases, and market communications. The pleading further avers that Benjamin had access to material information not available to the public and knew that adverse facts about manufacturing defects had not been disclosed to shareholders.
Benjamin’s dual roles overseeing both product experience and operations placed him at the intersection of customer safety data and manufacturing execution, according to the complaint. The action contends he was positioned to know whether Omnipod products met the safety standards he publicly described.
“Individual officers who sign SEC certifications bear personal responsibility for the accuracy of corporate disclosures. When executives make specific safety claims while selling millions in stock, investors deserve to know whether those claims were supported by the facts known internally.” — Joseph E. Levi, Esq.
Speak with an attorney about recovering damages from executive misconduct or call (212) 363-7500.
LEAD PLAINTIFF DEADLINE: August 31, 2026
ABOUT LEVI & KORSINSKY, LLP — Over the past 20 years, Levi & Korsinsky has secured hundreds of millions of dollars for aggrieved shareholders. The firm has extensive expertise in complex securities litigation and a team of over 70 employees. For seven consecutive years, Levi & Korsinsky has ranked in ISS Securities Class Action Services’ Top 50 Report. Investors who suffered losses have until August 31, 2026 to seek appointment as lead plaintiff. Attorney Advertising. Prior results do not guarantee similar outcomes.
Frequently Asked Questions About the PODD Lawsuit
Q: Who are the defendants named in the PODD lawsuit? A: The complaint names Insulet Corporation and individual defendants including Eric Benjamin (former EVP and COO), Ashley McEvoy (CEO), James Hollingshead (former CEO), Flavia Pease (CFO), Ana Chadwick (former CFO), and Trang Ly (Chief Medical Officer), all of whom allegedly made or controlled false public statements during the Class Period.
Q: What specific misstatements does the PODD lawsuit allege? A: The complaint alleges Insulet and its officers made materially false or misleading statements regarding the manufacturing quality, safety, and regulatory compliance of Omnipod insulin delivery systems, concealing defective manufacturing controls at the Acton, Massachusetts facility that led to two Medical Device Corrections affecting millions of Pods.
Q: What do PODD investors need to do right now? A: Gather brokerage records including purchase dates, share quantities, and prices paid. Contact Levi & Korsinsky for a free, no-obligation evaluation at jlevi@levikorsinsky.com or (212) 363-7500. No immediate action is required to remain eligible as a class member.
Q: What if I already sold my PODD shares — can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought during the Class Period and sold at a loss may still participate.
Q: How much did PODD stock drop? A: Shares declined $16.23 per share (6.88%) on March 13, 2026 following the first Medical Device Correction, and an additional $7.79 per share (5.07%) on May 27, 2026 following the second correction. The combined immediate post-disclosure declines totaled approximately $24 per share.
Q: What is a lead plaintiff and why does it matter? A: A lead plaintiff is the investor appointed by the court to represent the entire class. Lead plaintiffs are typically investors with the largest documented losses. Being appointed does not increase individual recovery but gives direct oversight of how the case is run.
Q: Do I need to go to court or give testimony? A: No. The overwhelming majority of class members never appear in court or give depositions. You submit a claim form to receive your portion of recovery.
Q: What does it cost me to participate? A: Nothing. Securities class actions are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260709542985/en/
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