Insulet stock hits 52-week low amid Omnipod 5 defect probe and class action scrutiny

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Insulet Corporation’s stock has hit a 52-week low after the company disclosed a manufacturing defect in its Omnipod 5 insulin delivery system, leading to securities fraud investigations by several law firms. The defect, affecting 1.5% of annual production, can cause insulin leakage and serious health risks. Despite the negative news and an expected remediation cost of up to $40 million, Insulet maintained its 2026 guidance, and analysts continue to show long-term confidence, especially with positive developments in its type 2 diabetes pipeline.

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