New York — Levi & Korsinsky, LLP said investors in Insulet Corporation may be eligible to recover losses in a securities class action lawsuit that names former Executive Vice President and Chief Operating Officer Eric Benjamin as a defendant.
The lawsuit alleges Benjamin made false statements about the safety of Insulet’s Omnipod products while selling about $3.7 million in company stock during the class period.
According to the firm, investors who purchased Insulet securities between Feb. 21, 2025, and May 26, 2026, suffered losses after the stock fell by about $24 per share across two corrective disclosures tied to alleged manufacturing issues affecting Omnipod products at the company’s Acton, Massachusetts facility.
The lead plaintiff deadline is Aug. 31, 2026.
Benjamin served as Insulet’s Chief Product and Customer Experience Officer from the start of the class period until Aug. 25, 2025, when he was promoted to Executive Vice President and Chief Operating Officer.
During Insulet’s second-quarter 2025 earnings call on Aug. 7, 2025, Benjamin told investors that “Omnipod 5 is safe, effective, understood to be really easy to use,” according to the lawsuit.
The complaint alleges the 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.
The lawsuit claims Benjamin sold 12,594 shares of Insulet common stock during the class period, collecting about $3.7 million in proceeds. The complaint alleges those sales were the largest among the individual defendants named in the case.
According to the complaint, former CEO Hollingshead sold 6,821 shares for about $1.8 million, while former CFO Chadwick sold 1,765 shares for about $441,691. Total insider proceeds during the class period exceeded $5.9 million across the three defendants, with Benjamin’s sales accounting for more than 62 percent of the alleged individual defendant stock sale proceeds.
The lawsuit also asserts claims against Benjamin under Section 20(a), alleging he had the power and authority to control the contents of Insulet’s SEC filings, press releases and market communications.
The complaint further alleges 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 roles overseeing both product experience and operations placed him at the intersection of customer safety data and manufacturing execution, according to the complaint. The lawsuit alleges 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.
