Class Action Reminder for Mereo BioPharma Shareholders
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 18 2026
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Should l Buy MREO?
Source: Globenewswire
- Lawsuit Background: Robbins LLP reminds all investors who purchased Mereo BioPharma Group plc (NASDAQ: MREO) American Depository Shares between June 5, 2023, and December 26, 2025, that a class action has been filed, alleging the company misled investors regarding clinical trial results.
- Study Failures: The complaint indicates that Mereo failed to meet the primary endpoint of reducing clinical fracture rates in its Phase 3 ORBIT and COSMIC studies, despite previously optimistic statements about the drug setrusumab, leading investors to buy shares at artificially inflated prices.
- Stock Price Plunge: Following the announcement on December 29, 2025, that the studies did not meet their endpoints, Mereo's ADS price plummeted from $2.31 on December 26, 2025, to $0.29, representing a decline of over 87.7%, severely impacting shareholder value.
- Next Steps: Shareholders wishing to serve as lead plaintiffs in the class action must submit their papers by April 6, 2026; Robbins LLP offers contingency fee representation, ensuring shareholders can recover losses without upfront costs.
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Analyst Views on MREO
Wall Street analysts forecast MREO stock price to rise
8 Analyst Rating
6 Buy
2 Hold
0 Sell
Strong Buy
Current: 0.343
Low
0.50
Averages
2.08
High
5.00
Current: 0.343
Low
0.50
Averages
2.08
High
5.00
About MREO
Mereo BioPharma Group plc is a biopharmaceutical company focused on the development of therapeutics for rare diseases. The Company has developed a portfolio of late-stage clinical product candidates, and its two rare disease product candidates are setrusumab for the treatment of osteogenesis imperfecta (OI) and alvelestat primarily for the treatment of severe alpha-1 antitrypsin deficiency-associated lung disease (AATD-LD). In addition to the rare disease programs, it has two oncology product candidates in clinical development, which include Etigilimab, an IgG1 monoclonal antibody which binds to the human T-cell immunoreceptor with Ig and ITIM domains (TIGIT) receptor on immune cells to improve the activation and effectiveness of T-cell and NK cell antitumor activity and Navicixizumab is a bispecific antibody that inhibits delta-like ligand 4 (DLL4) and vascular endothelial growth factor (VEGF). Navicixizumab is developed for the treatment of late-line ovarian cancer.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Legal Investigation Launched: Faruq & Faruqi LLP is investigating potential securities claims against Mereo BioPharma, specifically urging investors who purchased securities between June 5, 2023, and December 26, 2025, to contact them before the April 6, 2026 deadline to seek lead plaintiff status.
- Lawsuit Allegations: The lawsuit alleges that Mereo BioPharma and its executives violated federal securities laws by failing to disclose the true status of the Phase 3 ORBIT and COSMIC programs, leading to investor misconceptions about the company's prospects.
- Stock Price Plunge: On December 29, 2025, Mereo BioPharma announced that its two Phase 3 studies failed to meet primary endpoints, resulting in an 87.64% drop in stock price to $0.28 per share, reflecting strong market concerns about the company's future.
- Investor Rights Protection: Faruq & Faruqi LLP encourages anyone with information regarding Mereo BioPharma's conduct, including whistleblowers and former employees, to contact the firm to provide legal support and share information for investor protection.
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- Shareholder Notice: The Gross Law Firm has issued a notice to shareholders of Mereo BioPharma Group plc, encouraging those who purchased shares during the class period from June 5, 2023, to December 26, 2025, to contact the firm regarding potential lead plaintiff appointment for recovery.
- Allegations: The complaint alleges that Mereo BioPharma provided overly positive statements about its Phase 3 ORBIT and COSMIC programs while concealing significant adverse facts, misleading investors about the true state of these clinical trials.
- Stock Price Collapse: Following the announcement on December 29, 2025, that neither the ORBIT nor COSMIC studies achieved statistical significance, Mereo's ADS price plummeted from $2.31 per share on December 26, 2025, to $0.29 per share, representing a decline of over 87.7%.
- Next Steps for Shareholders: Shareholders must register by April 6, 2026, to participate in the class action, and upon registration, they will receive updates on the case's progress without any cost or obligation to participate.
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- Rating Downgrade: JP Morgan downgraded Mereo BioPharma (MREO) from overweight to neutral due to uncertainty surrounding the regulatory outlook for setrusumab, indicating market concerns about the company's future prospects.
- Price Target Removal: The bank has removed its previous price target of $8, with MREO's stock closing at just $0.34 on March 20, reflecting a lack of investor confidence in its future profitability.
- Clinical Trial Outcomes: Analyst Priyanka Grover noted that two phase 3 trials of setrusumab missed their primary endpoint of reducing annualized fracture rate, although supportive data on bone mineral density and pain in younger patients requires further clarity on regulatory pathways and timelines.
- Funding Needs Warning: While Mereo has a cash runway into mid-2027, if a viable regulatory pathway for setrusumab is established in European markets, the company may need to raise additional capital for product launch, increasing future financing uncertainties.
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- Lawsuit Reminder: The Schall Law Firm is reminding investors of a class action lawsuit against Mereo BioPharma for violations of §§10(b) and 20(a) of the Securities Exchange Act, concerning securities purchased between June 5, 2023, and December 26, 2025, with a deadline to contact the firm by April 6, 2026.
- False Statements: The complaint alleges that Mereo concealed negative facts regarding its Phase 3 ORBIT and COSMIC programs, rendering its public statements false and materially misleading throughout the class period, which led to investor losses.
- Investor Damages: When the market learned that Mereo failed to meet its primary endpoints, investors suffered damages, prompting the Schall Law Firm to encourage affected shareholders to join the lawsuit to recover their losses.
- Legal Consultation: The Schall Law Firm offers free legal consultations, allowing investors to contact the firm via phone or email to discuss their rights and participate in the lawsuit.
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- Lawsuit Background: DJS Law Group has alerted investors about a class action lawsuit against Mereo BioPharma for violations of securities laws, covering stock transactions from June 5, 2023, to December 26, 2025, indicating that the company's statements during this period were materially misleading, potentially leading to investor losses.
- Project Failures: The complaint alleges that Mereo's Phase 3 ORBIT and COSMIC programs failed to meet their endpoints, rendering the company's public statements false and misleading, which directly impacts investor confidence and the company's stock price.
- Investor Action: Affected shareholders are encouraged to contact DJS Law Group to participate in the lawsuit and potentially serve as lead plaintiffs, demonstrating investors' determination to seek recovery for their losses through legal action.
- Legal Team Advantage: DJS Law Group specializes in securities class actions and corporate governance litigation, boasting extensive experience and a strong client base, aiming to enhance investor returns through aggressive legal advocacy.
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Company Overview: Mereo BioPharma Group PLC is a biopharmaceutical company focused on developing innovative therapies for patients with rare diseases and unmet medical needs.
Recent Developments: JP Morgan has recently cut its rating on Mereo BioPharma, indicating a shift in market perception regarding the company's performance or potential.
Market Impact: The downgrade by JP Morgan may influence investor confidence and the stock's performance in the biopharmaceutical sector.
Future Outlook: Analysts and investors will be closely monitoring Mereo BioPharma's upcoming developments and clinical trial results to assess the company's trajectory moving forward.
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