Catalent $78M Securities Class Action Lawsuit Settlement, Claim Deadline May 26, 2026—Eligible Investors Could Receive Up to $0.44 Per Share

Catalent Inc. agreed to pay $78 million to settle allegations it misled investors about manufacturing quality and regulatory compliance between August 2021 and May 2023. If you purchased Catalent common stock or call options during this period, you have until May 26, 2026, to file a claim.

The settlement resolves claims that Catalent concealed serious manufacturing problems while its COVID-related business was declining—potentially giving you a path to recovery if you lost money on this investment.

What Allegations Led to This $78 Million Settlement?

The class action lawsuit accused Catalent of making false statements about three critical areas of its business during the height of post-pandemic demand shifts.

First, plaintiffs claimed Catalent overstated revenue through improper accounting practices. The company allegedly recognized revenue prematurely—before it was actually earned under Generally Accepted Accounting Principles (GAAP)—to make its financial performance appear stronger than reality.

Second, the lawsuit alleged Catalent engaged in “channel stuffing.” This means the company allegedly pushed excess inventory onto direct customers beyond what could actually be sold to end consumers, inflating short-term revenue numbers while creating future problems.

Third, Catalent allegedly concealed regulatory violations at key manufacturing facilities. The complaint stated the company disregarded FDA rules to rapidly produce excess inventory, then used this production to pad financial results through the accounting violations mentioned above.

These alleged misstatements occurred during a crucial transition period. Catalent’s vaccine manufacturing business initially thrived during COVID-19, pushing its stock to record highs. When COVID-related demand dropped off by mid-2021, the company allegedly used these deceptive practices to hide declining business conditions from investors.

How Did the Truth Emerge About Catalent’s Business Practices?

The alleged fraud began unraveling through a series of company disclosures in 2022.

In August 2022, Catalent warned investors about declining COVID-related demand, causing the stock price to drop approximately 7.4%. Then on November 1, 2022, the company revealed quarterly earnings had fallen to zero and significantly lowered its financial guidance.

Even more damaging, Catalent disclosed that regulatory issues at key facilities were negatively impacting financial results. On this news, Catalent’s stock plummeted more than 31% over two trading sessions, closing at $44.90 per share on November 2, 2022.

These revelations allegedly confirmed what company executives had been hiding: material weaknesses in internal controls over financial reporting, declining actual demand masked by accounting gimmicks, and serious regulatory problems at production facilities critical to the company’s operations.

Which Investors Are Eligible for Settlement Compensation?

You may qualify for a settlement payment if you purchased or acquired Catalent publicly traded common stock or exchange-traded call options—or if you sold exchange-traded put options—between August 30, 2021, and May 7, 2023, inclusive.

However, important exclusions apply. Investors who held Catalent securities only through a mutual fund are not class members and cannot file claims. The settlement specifically covers direct purchases of stock and options.

The case is officially titled City of Warwick Retirement System v. Catalent, Inc., Case No. 3:23-cv-01108, in the U.S. District Court for the District of New Jersey.

How Much Money Could Eligible Investors Receive?

The total settlement fund is $78 million. Your individual payment depends on several factors, including how many shares or options you purchased, when you bought them, how long you held them, and the total number of valid claims filed.

Settlement administrators will distribute payments on a pro rata basis according to a court-approved plan of allocation. Here’s what investors can expect before deductions for attorneys’ fees and administrative costs:

The estimated average distribution per allegedly damaged share of common stock is approximately $0.61. For call options, the estimated average is approximately $0.04 per allegedly damaged option. Put options average approximately $0.14 per allegedly damaged option.

After deductions for attorneys’ fees, litigation expenses, and administration costs, common stock holders can expect approximately $0.44 per allegedly damaged share. Call option holders will receive approximately $0.03 per allegedly damaged option.

Importantly, recognized loss amounts depend on transaction timing and security type. For common stock, your recognized loss depends on purchase and sale dates and whether you held shares through specific corrective disclosure periods when the truth emerged.

For options, recognized losses depend on option type, strike price, expiration date, and whether you purchased, sold, exercised, expired, or held the option during the class period. Settlement administrators will cap claims for Catalent call and put options at 2% of the net settlement fund.

Class members whose calculated payment would be less than $10 will not receive a payout.

How to File Your Claim for Catalent Settlement Compensation

You have two ways to submit your claim before the May 26, 2026 deadline.

Online Filing: Visit the official Catalent Securities Settlement website ( CatalentSecuritiesSettlement.com )to complete your claim form electronically. This method provides immediate confirmation of submission.

Mail Filing: Download the PDF claim form from the settlement website, print and complete it, then mail it to: Catalent Securities Settlement, c/o Epiq Class Action & Claims Solutions Inc., P.O. Box 2683, Portland, OR 97208-2683.

For questions, contact the settlement administrator at 877-239-4873 or [email protected].

Required Documentation to Support Your Claim

To verify your transactions in Catalent securities, you must provide acceptable proof of purchase and sale. Settlement administrators accept several forms of documentation.

Authorized statements from your broker containing the transactional information found in a confirmation slip are the most common form of proof. Alternatively, you can submit other documentation the settlement administrator deems adequate to establish your transactions.

The key information required includes: dates of purchase and sale, number of shares or options traded, transaction prices, and proof these were Catalent securities during the class period.

When Will Settlement Payments Be Distributed?

Settlement administrators will issue payments to eligible class members only after completing claim processing and after the court resolves any appeals and grants final approval to the settlement.

The court preliminarily approved the proposed settlement on December 29, 2025. Notice of the settlement commenced on January 13, 2026. However, final approval has not yet been granted, and appeals could delay payment distribution.

Once final approval is granted and all appeals resolved, the settlement administrator will calculate each claimant’s pro rata share based on the court-approved plan of allocation. If total recognized losses exceed the net settlement fund, administrators will reduce payments proportionally.

Understanding the Legal Basis of This Securities Fraud Case

The lawsuit asserted claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and SEC Rule 10b-5. These federal securities laws prohibit making false or misleading statements or omitting material facts in connection with securities trading.

Securities litigation like the Catalent case often involves challenges that make recovery complex. Similar cases involving rivian class action lawsuits demonstrate how companies can face significant liability when alleged misstatements about business performance cause stock price declines.

Catalent denies all allegations of wrongdoing and liability. The company agreed to settle to avoid the risks, costs, and delays of further litigation—a common outcome in securities class actions where companies choose settlement over the uncertainty of trial.

Frequently Asked Questions About the Catalent Settlement

Can I still use my Catalent shares or options while my claim is pending?

Yes. Filing a claim does not restrict your ability to hold, sell, or otherwise manage your Catalent securities. The settlement addresses past alleged violations, not current ownership rights.

What happens if I sold my Catalent shares at a loss during the class period?

You may still be eligible for compensation. The plan of allocation accounts for purchases and sales during the class period. Your recognized loss depends on when you bought and sold, and whether you held shares through corrective disclosure periods.

Do I need a lawyer to file a claim?

No. You can file your claim directly without legal representation. The claim form is designed for self-completion. However, if you have questions about complex transactions or significant holdings, you may choose to consult an attorney.

What if I held Catalent stock in a 401(k) or retirement account?

If you directly held Catalent stock in a self-directed retirement account where you made the purchase decision, you may be eligible. However, if you held Catalent only through a mutual fund within your retirement account, you are not a class member.

Can I opt out of the settlement and file my own lawsuit?

Yes, but the deadline to exclude yourself from the settlement has likely passed. Generally, class members must opt out before preliminary approval. Contact the settlement administrator immediately if you believe you have grounds for an individual lawsuit.

How does this settlement compare to other securities fraud cases?

The Catalent $78 million settlement ranks as a significant securities class action recovery. For comparison, other recent settlements in similar cases have ranged from tens of millions to hundreds of millions depending on company size and alleged harm. Cases involving Kraft Heinz securities claims resulted in a $450 million settlement, while other smaller companies settled for amounts comparable to Catalent’s $78 million fund.

What are my rights if I disagree with the settlement terms?

Class members can object to the settlement by filing written objections with the court explaining why you believe the terms are unfair, unreasonable, or inadequate. Check the settlement website for objection deadlines and procedures.

Last Updated: January 21, 2026

Disclaimer: This article provides general information only and does not constitute legal advice.

Ready to claim your settlement payment? Don’t let the May 26, 2026 deadline pass—file your claim today at the official Catalent Securities Settlement website.

Stay informed, stay protected. — AllAboutLawyer.com

About the Author

Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
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