Schall, Brown & Schwartz LLP (SBS) has launched an investigation into potential securities law violations by O-I Glass, Inc. (NYSE: OI), following the company’s disclosure of a severe deterioration in its European operations during the second quarter of 2026. The inquiry comes after O-I Glass reported that operating profits in Europe collapsed to $6 million from $90 million in the prior-year period, prompting the company to lower its adjusted earnings guidance for the full year and triggering a roughly 15% drop in share price on July 29, 2026.

The investigation by SBS focuses on whether the company issued false or misleading statements or failed to disclose material information pertinent to investors prior to its Q2 2026 earnings release on July 28, 2026. This legal scrutiny adds to an existing probe by Holzer & Holzer, LLC, which is examining compliance with federal securities laws following the same quarterly results.

Key Financial Drivers

The collapse in European profitability serves as the primary catalyst for both investigations. The dramatic year-over-year decline in operating income highlights significant operational challenges in the region, which had previously been a key profit center for the glass packaging manufacturer.

Legal Landscape

SBS, founded by partners Brian Schall, Andrew Brown, and David Schwartz, specializes in shareholder rights litigation and securities class actions. The firm states it is investigating claims on behalf of investors who may have suffered losses due to alleged misrepresentations regarding the company’s financial health and outlook.

Simultaneously, Holzer & Holzer, LLC is investigating the same period, focusing on material charges disclosed in the quarterly results. Their filing cites an $873 million non-cash goodwill impairment charge and a $96 million increase to deferred tax valuation allowances, both attributed to the European segment. These write-downs suggest underlying strategic challenges that may have impacted the company’s financial health earlier than publicly acknowledged.

What the Numbers Show

The convergence of operational and accounting distress in Europe presents a compelling case for investor scrutiny. The drop in operating profit from $90 million to $6 million represents a near-total erosion of profitability in the region for the quarter. When viewed alongside the massive $873 million goodwill impairment cited by Holzer & Holzer, the data suggests that the value of acquired assets in Europe was significantly overstated relative to their actual performance. The subsequent lowering of full-year guidance indicates that management anticipates these headwinds will persist, raising questions about the timeliness and accuracy of prior disclosures regarding the sustainability of European earnings.

Levi & Korsinsky, LLP has expanded its securities investigation into O-I Glass (NYSE: OI) following a sharp deterioration in the company’s financial performance and a second consecutive cut to its full-year guidance. The probe centers on whether management’s prior disclosures regarding fiscal 2026 earnings and European operations were materially misleading. Shares fell approximately 15% on July 29, 2026, after the company reported weak second-quarter results and lowered its outlook, triggering concerns among investors who purchased stock at allegedly inflated prices.

The investigation now incorporates specific quarterly data that highlights a stark divergence between early-year projections and mid-year realities. On February 11, 2026, O-I Glass guided full-year 2026 adjusted earnings to $1.65–$1.90 per share. By April 29, 2026, Chief Executive Officer Gordon Hardie had already reduced this target to $1.00–$1.50 per share during the first-quarter earnings call. Despite Hardie’s assertion that the company was "confident we can strengthen results as the year progresses," the subsequent quarter revealed further weakness. Actual first-quarter 2026 adjusted earnings per share (EPS) came in at $0.05, while second-quarter adjusted EPS was $0.09.

Divergence Between Guidance and Reality

The core of the legal scrutiny lies in the condition of O-I Glass’s European segment, which management previously claimed was "substantially contracted" on energy costs. On February 11, 2026, Chief Financial Officer John Haudrich projected adjusted EBITDA of $1.25 billion to $1.30 billion for fiscal 2026, citing expected savings of $150 million. However, recent filings show that Europe segment operating profit collapsed to $6 million in the second quarter, compared with $90 million in the same period a year earlier. During the April 29 call, the decline had been described as "down roughly $68 million from a year ago," yet the actual performance suggests deeper operational issues than disclosed.

Key Timeline of Events

Investor Eligibility and Next Steps

Investors who purchased O-I Glass securities between February 11, 2026, and July 29, 2026, and suffered losses may be eligible to participate in the investigation. Eligibility is determined by purchase date and documented losses, regardless of whether the shares are still held. Those who sold their positions at a loss remain eligible to seek recovery. Participants are advised to gather brokerage records, including purchase dates, share quantities, prices paid, and any subsequent sale details.

Levi & Korsinsky, LLP is offering a free, no-obligation evaluation of claims on a contingency basis, meaning there are no upfront costs. U.S. residents and international investors who purchased shares on U.S. exchanges may qualify. Interested parties can contact Joseph E. Levi, Esq., at jlevi@levikorsinsky.com or (212) 363-7500 to submit their information before the investigation advances further.