Graphic Packaging faces class action after $350M EBITDA miss

Graphic Packaging Holding Co. faces a securities class action after adjusted EBITDA missed its $1.78 billion guidance by more than $350 million.

"The company downplayed the severity of inventory management problems and reduced demand despite their material impact on financial performance," Brian Schall of the Schall Law Firm said.

The lawsuit covers investors who bought GPK shares between Feb. 4, 2025, and Feb. 2, 2026. Graphic Packaging had projected up to $8.9 billion in net sales and $2.78 in adjusted EPS for full-year 2025. Actual adjusted EBITDA came in at $1.43 billion, well below the original $1.78 billion target. The company's CEO resigned, and shares lost more than half their value.

The stock collapse erased billions in market value. Investors have until July 6 to seek lead plaintiff status in the case, which alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.

Multiple law firms have filed similar complaints, including the Rosen Law Firm and Holzer & Holzer. The complaints allege that Graphic Packaging overstated the strength of its business model and failed to disclose significant inventory management issues, rising costs, and declining demand that would materially hurt financial results.

Graphic Packaging, based in Atlanta, is one of the largest producers of paperboard packaging for consumer goods. The company had positioned itself as a beneficiary of the shift away from plastic packaging, but rising input costs and inventory destocking by customers weighed on results throughout 2025.

The class has not yet been certified. Shareholders who wish to serve as lead plaintiff must file a motion with the court by the July 6 deadline. Those who take no action can remain absent class members and still share in any potential recovery.

The lawsuit puts additional pressure on a company already navigating a leadership transition and operational headwinds. Investors will watch for any settlement announcements or further disclosures in the company's next quarterly filing.

This article is for informational purposes only and does not constitute investment advice.