Vistagen Therapeutics (VTGN) Accused of Misleading Investors, Stock Plummets 80%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 16 2026
0mins
Should l Buy VTGN?
Source: Businesswire
- Lawsuit Disclosure: Robbins LLP has filed a class action against Vistagen Therapeutics, Inc. (VTGN), alleging that the company misled investors between April 1, 2024, and December 16, 2025, resulting in artificially inflated stock prices due to false information.
- Poor Trial Results: On December 17, 2025, Vistagen announced that its PALISADE-3 Phase 3 trial did not show statistically significant improvement on the primary endpoint, causing the stock price to plummet from $4.36 to $0.86, a decline exceeding 80%.
- Investor Losses: Investors who purchased shares at inflated prices due to Vistagen's misleading statements may face substantial losses, prompting the initiation of the class action lawsuit.
- Legal Implications: Robbins LLP is urging affected shareholders to participate in the lawsuit as lead plaintiffs, representing other shareholders and highlighting the need for improved corporate governance to protect investor rights.
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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: 0.563
Low
0.90
Averages
0.97
High
1.00
Current: 0.563
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 Filed Against Vistagen Therapeutics for Securities Violations
- Class Action Initiated: Bronstein, Gewirtz & Grossman, LLC has announced a class action lawsuit against Vistagen Therapeutics, aiming to recover damages for investors who purchased the company's securities between April 1, 2024, and December 16, 2025, highlighting concerns over potential investor losses.
- False Statement Allegations: The complaint alleges that Vistagen made overly optimistic statements regarding the development of fasedienol throughout the class period, despite significant adverse facts surrounding its PALISADE-3 trial, which could lead to misjudgments about the company's prospects by investors.
- Concealment of Information: The lawsuit also points out that Vistagen concealed material adverse data related to the design, execution, and clinical results of the PALISADE-3 study, indicating that such lack of transparency may have negatively impacted investor decision-making.
- Investor Action Recommendation: Affected investors are encouraged to apply to be lead plaintiffs by March 16, 2026, to share in any potential recovery from the lawsuit, suggesting that the legal risks faced by the company could impact its stock performance.
See More
Class Action Lawsuit Against Vistagen Therapeutics Announced
- Class Action Reminder: The Schall Law Firm has announced a class action lawsuit against Vistagen Therapeutics for violations of securities laws, urging investors who traded between April 1, 2024, and December 16, 2025, to contact them by March 16, 2026, to participate.
- False Statements Allegation: The complaint alleges that Vistagen misled investors regarding the success of its fasedienol drug candidate by creating a false impression of positive results from the PALISADE-2 trial, resulting in significant investor losses when the truth emerged.
- Legal Consultation Offer: The Schall Law Firm offers free legal consultations to affected investors, encouraging them to discuss their rights and participate in the lawsuit, highlighting the firm's specialization in securities class actions and shareholder rights litigation.
- Certification Status: The class action has not yet been certified, meaning investors are not currently represented by an attorney, and those who choose not to act will remain absent class members, underscoring the importance of timely participation.
See More
Faruqi & Faruqi Investigates Claims Against Vistagen Investors
- Legal Investigation Launched: Faruqi & Faruqi LLP is investigating potential claims against Vistagen Therapeutics, Inc., focusing on investors who purchased securities between April 1, 2024, and December 16, 2025, indicating possible legal risks for the company.
- 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, emphasizing the importance of timely action to protect their legal rights.
- Direct Contact Channels: Investors can directly contact Faruqi & Faruqi partner Josh Wilson at 877-247-4292 or 212-983-9330 (Ext. 1310) for detailed information on their claims options, ensuring timely communication of critical information.
- Potential Impact Assessment: This investigation may negatively affect Vistagen's stock price and investor confidence, prompting investors to closely monitor developments to adjust their investment strategies accordingly.
See More
Vistagen Faces Class Action Lawsuit as Stock Plummets Over 80%
- Class Action Notification: Levi & Korsinsky LLP has informed investors of Vistagen Therapeutics about 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 statistically significant improvement on its primary endpoint, leading to 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 must request to be appointed as lead plaintiff by March 16, 2026, to participate in any potential recovery, with no out-of-pocket costs required, thus lowering the barrier for investor participation.
- Law Firm's Credentials: With 20 years of experience in securities litigation, Levi & Korsinsky has secured hundreds of millions for aggrieved shareholders and has been recognized for seven consecutive years as one of the top securities litigation firms in the U.S., showcasing its expertise in complex cases.
See More
Vistagen Therapeutics Shareholder Notice
- Lawsuit Notice: The Gross Law Firm has issued a notice to shareholders of Vistagen Therapeutics, urging those who purchased shares between April 1, 2024, and December 16, 2025, to contact the firm regarding potential lead plaintiff status for recovery.
- Poor Trial Results: On December 17, 2025, Vistagen announced that its PALISADE-3 trial did not achieve statistical significance on its primary endpoint, causing the stock price to plummet from $4.36 to $0.86, a decline exceeding 80%, which severely undermined investor confidence.
- Shareholder Registration Deadline: Shareholders must register by March 16, 2026, to participate in the class action lawsuit, and upon registration, they will receive real-time updates on the case's progress, ensuring their rights are protected throughout the litigation process.
- Law Firm Background: The Gross Law Firm is a nationally recognized class action law firm committed to protecting investors who have suffered losses due to false statements and unethical business practices, emphasizing the need for companies to adhere to responsible business practices.
See More
Class Action Filed Against Vistagen Therapeutics
- Class Action Initiated: Robbins LLP reminds investors of a class action filed on behalf of those who purchased Vistagen Therapeutics (NASDAQ:VTGN) common stock between April 1, 2024, and December 16, 2025, indicating significant legal risks that could undermine shareholder confidence.
- Allegations of Misrepresentation: The lawsuit alleges that Vistagen misled investors regarding the efficacy of its Fasedienol clinical trial, causing shareholders to buy stock at artificially inflated prices, highlighting serious deficiencies in the company's disclosure practices.
- Poor Trial Results: On December 17, 2025, Vistagen announced that its PALISADE-3 trial did not achieve statistically significant improvement on the primary endpoint, resulting in a dramatic stock price drop from $4.36 to $0.86, a decline of over 80%, reflecting extreme market pessimism about the company's future.
- Investor Action Recommendations: Investors are advised to submit their applications to serve as lead plaintiffs in the class action by March 16, 2026, indicating that while participation in the case is not required for recovery, the need for improved corporate governance and shareholder rights remains critical.
See More
Class Action Filed Against Vistagen Therapeutics for Securities Violations
- Class Action Initiated: Bronstein, Gewirtz & Grossman, LLC has announced a class action lawsuit against Vistagen Therapeutics, aiming to recover damages for investors who purchased the company's securities between April 1, 2024, and December 16, 2025, highlighting concerns over potential investor losses.
- False Statement Allegations: The complaint alleges that Vistagen made overly optimistic statements regarding the development of fasedienol throughout the class period, despite significant adverse facts surrounding its PALISADE-3 trial, which could lead to misjudgments about the company's prospects by investors.
- Concealment of Information: The lawsuit also points out that Vistagen concealed material adverse data related to the design, execution, and clinical results of the PALISADE-3 study, indicating that such lack of transparency may have negatively impacted investor decision-making.
- Investor Action Recommendation: Affected investors are encouraged to apply to be lead plaintiffs by March 16, 2026, to share in any potential recovery from the lawsuit, suggesting that the legal risks faced by the company could impact its stock performance.
See More
Class Action Lawsuit Against Vistagen Therapeutics Announced
- Class Action Reminder: The Schall Law Firm has announced a class action lawsuit against Vistagen Therapeutics for violations of securities laws, urging investors who traded between April 1, 2024, and December 16, 2025, to contact them by March 16, 2026, to participate.
- False Statements Allegation: The complaint alleges that Vistagen misled investors regarding the success of its fasedienol drug candidate by creating a false impression of positive results from the PALISADE-2 trial, resulting in significant investor losses when the truth emerged.
- Legal Consultation Offer: The Schall Law Firm offers free legal consultations to affected investors, encouraging them to discuss their rights and participate in the lawsuit, highlighting the firm's specialization in securities class actions and shareholder rights litigation.
- Certification Status: The class action has not yet been certified, meaning investors are not currently represented by an attorney, and those who choose not to act will remain absent class members, underscoring the importance of timely participation.
See More
Faruqi & Faruqi Investigates Claims Against Vistagen Investors
- Legal Investigation Launched: Faruqi & Faruqi LLP is investigating potential claims against Vistagen Therapeutics, Inc., focusing on investors who purchased securities between April 1, 2024, and December 16, 2025, indicating possible legal risks for the company.
- 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, emphasizing the importance of timely action to protect their legal rights.
- Direct Contact Channels: Investors can directly contact Faruqi & Faruqi partner Josh Wilson at 877-247-4292 or 212-983-9330 (Ext. 1310) for detailed information on their claims options, ensuring timely communication of critical information.
- Potential Impact Assessment: This investigation may negatively affect Vistagen's stock price and investor confidence, prompting investors to closely monitor developments to adjust their investment strategies accordingly.
See More
Vistagen Faces Class Action Lawsuit as Stock Plummets Over 80%
- Class Action Notification: Levi & Korsinsky LLP has informed investors of Vistagen Therapeutics about 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 statistically significant improvement on its primary endpoint, leading to 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 must request to be appointed as lead plaintiff by March 16, 2026, to participate in any potential recovery, with no out-of-pocket costs required, thus lowering the barrier for investor participation.
- Law Firm's Credentials: With 20 years of experience in securities litigation, Levi & Korsinsky has secured hundreds of millions for aggrieved shareholders and has been recognized for seven consecutive years as one of the top securities litigation firms in the U.S., showcasing its expertise in complex cases.
See More
Vistagen Therapeutics Shareholder Notice
- Lawsuit Notice: The Gross Law Firm has issued a notice to shareholders of Vistagen Therapeutics, urging those who purchased shares between April 1, 2024, and December 16, 2025, to contact the firm regarding potential lead plaintiff status for recovery.
- Poor Trial Results: On December 17, 2025, Vistagen announced that its PALISADE-3 trial did not achieve statistical significance on its primary endpoint, causing the stock price to plummet from $4.36 to $0.86, a decline exceeding 80%, which severely undermined investor confidence.
- Shareholder Registration Deadline: Shareholders must register by March 16, 2026, to participate in the class action lawsuit, and upon registration, they will receive real-time updates on the case's progress, ensuring their rights are protected throughout the litigation process.
- Law Firm Background: The Gross Law Firm is a nationally recognized class action law firm committed to protecting investors who have suffered losses due to false statements and unethical business practices, emphasizing the need for companies to adhere to responsible business practices.
See More
Class Action Filed Against Vistagen Therapeutics
- Class Action Initiated: Robbins LLP reminds investors of a class action filed on behalf of those who purchased Vistagen Therapeutics (NASDAQ:VTGN) common stock between April 1, 2024, and December 16, 2025, indicating significant legal risks that could undermine shareholder confidence.
- Allegations of Misrepresentation: The lawsuit alleges that Vistagen misled investors regarding the efficacy of its Fasedienol clinical trial, causing shareholders to buy stock at artificially inflated prices, highlighting serious deficiencies in the company's disclosure practices.
- Poor Trial Results: On December 17, 2025, Vistagen announced that its PALISADE-3 trial did not achieve statistically significant improvement on the primary endpoint, resulting in a dramatic stock price drop from $4.36 to $0.86, a decline of over 80%, reflecting extreme market pessimism about the company's future.
- Investor Action Recommendations: Investors are advised to submit their applications to serve as lead plaintiffs in the class action by March 16, 2026, indicating that while participation in the case is not required for recovery, the need for improved corporate governance and shareholder rights remains critical.
See More
