Vistagen Faces Class Action Lawsuit After 80% Stock Plunge
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 19 hours ago
0mins
Should l Buy VTGN?
Source: Globenewswire
- Class Action Notification: Levi & Korsinsky LLP has informed investors of Vistagen Therapeutics about a class action lawsuit due to alleged securities fraud affecting investors from April 1, 2024, to December 16, 2025.
- Poor Trial Results: On December 17, 2025, Vistagen announced that its PALISADE-3 trial did not show statistically significant improvement on the primary endpoint, leading to a loss of investor confidence.
- Dramatic Stock Decline: Following the negative announcement, Vistagen's stock plummeted from $4.36 per share on December 16, 2025, to $0.86 per share on December 17, 2025, representing an over 80% decline, indicating a pessimistic outlook from the market.
- Investor Rights Protection: Affected investors have until March 16, 2026, to apply to be lead plaintiffs in the class action lawsuit, with no out-of-pocket costs required to participate in seeking compensation.
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Analyst Views on VTGN
Wall Street analysts forecast VTGN stock price to rise
5 Analyst Rating
0 Buy
5 Hold
0 Sell
Hold
Current: 0.551
Low
0.90
Averages
0.97
High
1.00
Current: 0.551
Low
0.90
Averages
0.97
High
1.00
About VTGN
Vistagen Therapeutics, Inc. is a late clinical-stage biopharmaceutical company. The Company is leveraging a deep understanding of nose-to-brain neurocircuitry to develop and commercialize a new class of intranasal product candidates called pherines. Pherines specifically and selectively bind as agonists on peripheral receptors on human nasal chemosensory neurons and are designed to activate olfactory bulb-to-brain neurocircuits believed to regulate brain areas involved in behavior and autonomic nervous system activity. Its neuroscience product candidates include Fasedienol, Itruvone, PH15, PH80, and PH284. Fasedienol, its lead clinical-stage product candidate, is a synthetic neuroactive intranasal pherine in an ongoing U.S. registration-directed Phase III clinical development program for the acute treatment of anxiety in adults with SAD. Its neuroscience pipeline also includes an oral prodrug with potential to treat certain neurological conditions involving the NMDA receptor.
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.
- Class Action Deadline: Rosen Law Firm reminds investors who purchased Vistagen Therapeutics (NASDAQ: VTGN) common stock between April 1, 2024, and December 16, 2025, that they must apply to be lead plaintiff by March 16, 2026, or risk losing their right to compensation.
- Lawsuit Background: The lawsuit alleges that Vistagen's management provided overly optimistic statements regarding the development and commercialization of its drug fasedienol, claiming that positive results from the PALISADE-2 trial would ensure success in the PALISADE-3 trial, while simultaneously concealing significant adverse facts related to the trial, resulting in investor losses.
- Law Firm Credentials: Rosen Law Firm specializes in securities class actions and has recovered over $438 million for investors in 2019 alone, being ranked first by ISS Securities Class Action Services in 2017, highlighting its extensive experience and success in the field, which investors should consider when selecting legal counsel.
- How to Participate: Investors can join the Vistagen class action by visiting the Rosen Law Firm website or calling toll-free at 866-767-3653, with no upfront fees required, and until the class is certified, investors may choose to retain their own counsel or remain absent from the proceedings.
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- Class Action Notification: Levi & Korsinsky LLP has informed investors of Vistagen Therapeutics about a class action lawsuit due to alleged securities fraud affecting investors from April 1, 2024, to December 16, 2025.
- Poor Trial Results: On December 17, 2025, Vistagen announced that its PALISADE-3 trial did not show statistically significant improvement on the primary endpoint, leading to a loss of investor confidence.
- Dramatic Stock Decline: Following the negative announcement, Vistagen's stock plummeted from $4.36 per share on December 16, 2025, to $0.86 per share on December 17, 2025, representing an over 80% decline, indicating a pessimistic outlook from the market.
- Investor Rights Protection: Affected investors have until March 16, 2026, to apply to be lead plaintiffs in the class action lawsuit, with no out-of-pocket costs required to participate in seeking compensation.
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- Class Action Notification: The Schall Law Firm reminds investors of a class action lawsuit against Vistagen Therapeutics for violations of securities laws, concerning securities transactions between April 1, 2024, and December 16, 2025, with a deadline for participation set for March 16, 2026.
- False Statement Allegations: The complaint alleges that Vistagen misled the market regarding the likelihood of success for its fasedienol drug candidate by creating a false impression of positive results from the PALISADE-2 trial, leading to investor losses when the truth emerged.
- Legal Implications: Until the class action is certified, investors are not represented by an attorney, and those who choose not to act will remain absent class members, potentially forfeiting their right to recover losses, highlighting the importance of timely participation.
- Investor Rights Protection: The Schall Law Firm specializes in securities class actions and is dedicated to protecting the rights of investors worldwide, encouraging affected shareholders to reach out for free legal consultations to ensure their rights are upheld.
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- PomDoctor Lawsuit Overview: A class action has been initiated against PomDoctor, Ltd. (NASDAQ:POM) for the period from October 9 to December 11, 2025, alleging that the company made materially false and misleading statements while failing to disclose significant adverse facts about its trading activities, resulting in investor losses.
- Insider Trading Allegations: The lawsuit claims that insiders at PomDoctor used offshore or nominee accounts to facilitate coordinated share dumping during a price inflation scheme, exacerbating investor losses and highlighting severe governance issues within the company.
- Vistagen Lawsuit Context: Shareholders of Vistagen Therapeutics, Inc. (NASDAQ:VTGN) have also filed a class action for the period from April 1, 2024, to December 16, 2025, alleging that the company disseminated materially false positive statements while concealing adverse facts related to its PALISADE-3 trial results.
- Stock Price Plunge Impact: Following the announcement on December 17, 2025, that the trial did not meet its primary endpoint, Vistagen's stock price plummeted from $4.36 to $0.86, a decline of over 80%, reflecting extreme pessimism about the company's future prospects.
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- Legal Investigation Launched: Faruq & Faruqi, LLP is investigating potential claims against Vistagen Therapeutics, Inc., particularly for investors who purchased or acquired securities between April 1, 2024, and December 16, 2025, highlighting the firm's commitment to protecting investor rights.
- Investor Rights Reminder: The firm reminds investors that March 16, 2026, is the deadline to seek the role of lead plaintiff in a federal securities class action, which could significantly impact investors' legal options and potential recoveries.
- Direct Contact Encouraged: Partner Josh Wilson encourages affected investors to contact him directly at 877-247-4292 or 212-983-9330 (Ext. 1310), demonstrating the firm's dedication to client support and service.
- Class Action Context: This investigation is related to an existing federal securities class action against Vistagen, reflecting market concerns about the company's potential legal risks, which could negatively affect its stock price and investor confidence.
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- Litigation Timeline: Rosen Law Firm reminds investors who purchased Vistagen common stock between April 1, 2024, and December 16, 2025, that they must apply to be lead plaintiffs by March 16, 2026, to protect their rights in the class action lawsuit.
- Fee Structure: Investors joining the Vistagen class action will incur no out-of-pocket costs, as the law firm operates on a contingency fee basis, which alleviates financial burdens and encourages more affected shareholders to participate.
- Case Background: The lawsuit alleges that Vistagen provided overly optimistic information regarding its drug fasedienol while concealing significant adverse facts related to the PALISADE-3 clinical trial, resulting in investor losses when the truth emerged.
- Law Firm Credentials: Rosen Law Firm is renowned for its successful track record in securities class actions, having recovered over $438 million for investors in 2019 alone, demonstrating its expertise and resource advantages in handling similar cases.
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