Mereo BioPharma Faces Class Action for Securities Fraud
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Should l Buy MREO?
Source: Businesswire
- Lawsuit Reminder: The Schall Law Firm reminds investors of a class action lawsuit against Mereo BioPharma Group plc for violations of §§10(b) and 20(a) of the Securities Exchange Act, concerning securities purchased between June 5, 2023, and December 26, 2025.
- False Statements: The complaint alleges that Mereo concealed negative facts regarding its Phase 3 ORBIT and COSMIC programs, resulting in public statements that were false and materially misleading throughout the class period.
- Investor Losses: When the market learned the truth about Mereo's failure to meet primary endpoints, investors suffered damages, indicating a significant impact on investor confidence and the company's reputation.
- Legal Consultation Opportunity: The Schall Law Firm encourages affected investors to contact them before April 6, 2026, to discuss their rights and participate in the lawsuit, emphasizing that investors are not represented until the class is certified.
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Analyst Views on MREO
Wall Street analysts forecast MREO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MREO is 2.08 USD with a low forecast of 0.50 USD and a high forecast of 5.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
8 Analyst Rating
6 Buy
2 Hold
0 Sell
Strong Buy
Current: 0.410
Low
0.50
Averages
2.08
High
5.00
Current: 0.410
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.
- Lawsuit Reminder: The Schall Law Firm reminds investors of a class action lawsuit against Mereo BioPharma Group plc for violations of §§10(b) and 20(a) of the Securities Exchange Act, concerning securities purchased between June 5, 2023, and December 26, 2025.
- False Statements: The complaint alleges that Mereo concealed negative facts regarding its Phase 3 ORBIT and COSMIC programs, resulting in public statements that were false and materially misleading throughout the class period.
- Investor Losses: When the market learned the truth about Mereo's failure to meet primary endpoints, investors suffered damages, indicating a significant impact on investor confidence and the company's reputation.
- Legal Consultation Opportunity: The Schall Law Firm encourages affected investors to contact them before April 6, 2026, to discuss their rights and participate in the lawsuit, emphasizing that investors are not represented until the class is certified.
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- Lawsuit Background: Mereo BioPharma Group plc is facing a shareholder class action lawsuit alleging that the company issued false and misleading statements while failing to disclose significant adverse facts regarding setrusumab's statistical significance in the ORBIT and COSMIC studies.
- Investor Impact: Shareholders who purchased Mereo stock between June 5, 2023, and December 26, 2025, and experienced significant losses are encouraged to contact Holzer & Holzer law firm to discuss their legal rights, indicating the potential financial implications of this lawsuit on investors.
- Legal Proceedings: Plaintiffs must apply to the court to be appointed lead plaintiff by April 6, 2026, which may affect investors' participation and claims strategy in this case.
- Law Firm Background: Holzer & Holzer, LLC has been dedicated to vigorous representation of shareholders since its founding in 2000, recovering hundreds of millions of dollars for shareholders affected by fraud and corporate misconduct, showcasing its expertise and success in securities litigation.
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- Lawsuit Announcement: Robbins LLP has filed a class action on behalf of investors who purchased Mereo BioPharma Group plc's American Depository Shares between June 5, 2023, and December 26, 2025, alleging misleading statements regarding clinical trials.
- Clinical Trial Failures: The lawsuit claims that Mereo misrepresented the expected outcomes of its ORBIT and COSMIC studies for setrusumab, asserting efficacy in reducing fracture rates, while the trials failed to meet their primary endpoints.
- Stock Price Collapse: Following the announcement on December 29, 2025, that the trials did not achieve expected results, Mereo's ADS plummeted from $2.31 to $0.29, representing a decline of over 87.7%, resulting in significant losses for investors.
- Investor Rights Protection: Robbins LLP encourages affected shareholders to participate in the class action against Mereo, highlighting that legal representation is on a contingency fee basis, meaning shareholders incur no costs unless they recover damages.
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- Investigation Launched: Pomerantz LLP is investigating whether Mereo BioPharma Group plc has engaged in securities fraud or other unlawful business practices, aiming to protect investor rights and potentially initiate a class action lawsuit.
- Clinical Trial Results: On December 29, 2025, Mereo announced that its two Phase 3 studies for setrusumab failed to achieve statistical significance on primary endpoints, leading to a decline in investor confidence.
- Stock Price Plunge: Following this news, Mereo's stock price fell by $2.02, or 87.64%, closing at $0.28 per share on December 29, 2025, reflecting a pessimistic outlook from the market regarding the company's future prospects.
- Legal Implications: Pomerantz LLP, recognized for its expertise in securities litigation, may file a class action against Mereo, further exacerbating the legal and financial risks the company faces.
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- Legal Investigation Initiated: Holzer & Holzer, LLC is investigating whether Mereo BioPharma Group plc complied with federal securities laws, particularly after the December 29, 2025 announcement of Phase 3 Orbit and Cosmic study results, which revealed that neither study achieved statistical significance, leading to a stock price drop.
- Poor Clinical Trial Results: Mereo's studies failed to demonstrate that setrusumab (UX143) was superior to placebo or bisphosphonates in reducing clinical fracture rates, raising doubts about the product's efficacy in treating Osteogenesis Imperfecta, which could adversely affect future market performance.
- Investor Loss Warning: Following the disappointing study results, Mereo's stock price declined, prompting Holzer & Holzer to encourage investors who purchased shares during this period and suffered losses to reach out to discuss their legal rights, highlighting a commitment to investor protection.
- Law Firm Background: Since its founding in 2000, Holzer & Holzer has focused on vigorous representation of shareholders and investors, recovering hundreds of millions of dollars for defrauded shareholders, underscoring its expertise and influence in the securities litigation field.
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- Drug Development Progress: Mereo BioPharma's setrusumab (UX-143) for Osteogenesis Imperfecta did not meet its primary endpoint in December 2025 trials, yet achieved statistical significance in improving bone mineral density, indicating potential therapeutic value that may influence future regulatory approvals.
- Cash Flow Outlook: Following recent clinical data, Mereo expects its cash runway to extend into mid-2027, with CEO Denise Scots-Knight noting ongoing assessments of overall Phase 3 trial data to determine next steps, ensuring continued investment in R&D.
- New Drug Clinical Plans: Mereo's alvelestat (MPH-966) is set to initiate a global Phase 3 trial enrolling approximately 220 patients for Alpha-1 Antitrypsin Deficiency, expected to support regulatory submissions in both the U.S. and Europe, demonstrating the company's strategic focus in the rare disease sector.
- Partnership Development: Mereo has partnered with Ashibio, Inc. for the development of vantictumab (OMP18R5), which will fully fund the global program for Autosomal Dominant Osteopetrosis Type 2, with a Phase 2 study planned for the second half of 2026, further expanding the company's product pipeline.
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