On December 29, 2025, U.S. District Judge Zahid Quraishi entered an order preliminarily approving a settlement for $78 million in In re City of Warwick Ret. Sys. v. Catalent, Inc. et al., a securities fraud suit pending in New Jersey federal court.
Led by SEB Funds AB and co-lead plaintiff the Public Employees' Retirement System of Mississippi, plaintiffs alleged that Catalent, a supplier of vaccines and other medical products, and its former CEO and CFO, falsely claimed that the company’s internal controls were fully compliant with generally accepted accounting principles (or GAAP) when, in fact, defendants had engaged in widespread accounting manipulations. Plaintiffs further alleged that Catalent made a series of misrepresentations about the state of the company’s key production facilities following a spate of quality control breakdowns. When the true facts were revealed through a 2023 restatement of Catalent’s financials and reports of contracting revenues, Catalent shareholders suffered massive investment losses.
After overcoming Defendants’ motion to dismiss the claims, plaintiffs conducted extensive discovery and were in the midst of class certification proceedings at the time of settlement. The parties’ settlement is subject to final approval by the Court.
The Kessler Topaz team representing SEB and the investor class includes Matthew Mustokoff, Joshua D'Ancona, Jamie McCall, David Bocian, Margaret Mazzeo, and Ryan Shelton-Benson.