Vistagen Faces Class Action Lawsuit as Stock Plummets Over 80%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 11h ago
0mins
Source: Globenewswire
- Class Action Notification: Levi & Korsinsky LLP has notified investors in Vistagen Therapeutics of a class action lawsuit due to alleged securities fraud occurring between April 2024 and December 2025, aiming to recover losses for affected investors.
- Poor Trial Results: On December 17, 2025, Vistagen announced that its PALISADE-3 trial did not achieve statistical significance on its primary endpoint, causing a dramatic stock price drop from $4.36 to $0.86, representing a decline of over 80%, which severely impacted investor confidence.
- Legal Deadline: Investors who suffered losses during the relevant period must apply by March 16, 2026, to be appointed as lead plaintiff, with no out-of-pocket costs required to participate in any potential recovery.
- Law Firm Background: Levi & Korsinsky has over 20 years of experience in securities litigation, securing hundreds of millions for shareholders, and has been recognized as one of the top securities litigation firms in the U.S. for seven consecutive years, highlighting its expertise in complex cases.
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Analyst Views on VTGN
Wall Street analysts forecast VTGN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for VTGN is 0.97 USD with a low forecast of 0.90 USD and a high forecast of 1.00 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.
5 Analyst Rating
0 Buy
5 Hold
0 Sell
Hold
Current: 0.586
Low
0.90
Averages
0.97
High
1.00
Current: 0.586
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.
Vistagen Faces Class Action Lawsuit Impacting Stock Price
- Class Action Filed: Pomerantz LLP has initiated a class action lawsuit against Vistagen Therapeutics, alleging securities fraud and other unlawful business practices by the company and certain executives, which could expose the firm to significant legal risks.
- Stock Price Plunge: Following the December 17, 2025 announcement that the PALISADE-3 Phase 3 study failed to show statistically significant improvement, Vistagen's stock price plummeted by 80.25% to close at $0.861 per share, reflecting extreme market pessimism regarding the company's future.
- Investor Action Deadline: Investors are advised to apply by March 16, 2026, to be appointed as Lead Plaintiff in the class action, highlighting the potential impact of this event on investor interests and corporate governance.
- Legal Firm Background: Pomerantz LLP, a premier firm in securities class litigation with over 85 years of experience, focuses on fighting for the rights of victims of securities fraud, indicating the broad legal implications this case may entail.

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Vistagen Faces Class Action Lawsuit as Stock Plummets Over 80%
- Class Action Notification: Levi & Korsinsky LLP has notified investors in Vistagen Therapeutics of a class action lawsuit due to alleged securities fraud occurring between April 2024 and December 2025, aiming to recover losses for affected investors.
- Poor Trial Results: On December 17, 2025, Vistagen announced that its PALISADE-3 trial did not achieve statistical significance on its primary endpoint, causing a dramatic stock price drop from $4.36 to $0.86, representing a decline of over 80%, which severely impacted investor confidence.
- Legal Deadline: Investors who suffered losses during the relevant period must apply by March 16, 2026, to be appointed as lead plaintiff, with no out-of-pocket costs required to participate in any potential recovery.
- Law Firm Background: Levi & Korsinsky has over 20 years of experience in securities litigation, securing hundreds of millions for shareholders, and has been recognized as one of the top securities litigation firms in the U.S. for seven consecutive years, highlighting its expertise in complex cases.

Continue Reading





