Vistagen Therapeutics Faces Class Action Lawsuit for Misleading Investors on Drug Development
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Businesswire
- Class Action Initiated: Rosen Law Firm has filed a class action lawsuit on behalf of investors who purchased Vistagen (NASDAQ: VTGN) common stock between April 1, 2024, and December 16, 2025, alleging that the company misled investors regarding its drug development, resulting in shareholders buying stock at artificially inflated prices.
- False Statements Uncovered: The lawsuit claims that Vistagen made overly positive assertions about the success of its drug fasedienol for social anxiety disorder while concealing negative information about the PALISADE-3 clinical trial, leading to investor losses.
- Investor Damages: Due to Vistagen's misleading information, investors purchased shares at inflated prices, and the lawsuit asserts that when the true details emerged, investors suffered significant financial losses, impacting the company's market reputation.
- Legal Proceedings: Investors wishing to serve as lead plaintiffs in the class action must file motions with the court by March 16, 2026, and Rosen Law Firm offers legal representation on a contingency fee basis, ensuring shareholders incur no costs.
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 15.50 USD with a low forecast of 12.00 USD and a high forecast of 19.00 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.
3 Analyst Rating
3 Buy
0 Hold
0 Sell
Strong Buy
Current: 0.671
Low
12.00
Averages
15.50
High
19.00
Current: 0.671
Low
12.00
Averages
15.50
High
19.00
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.
