Vistagen Therapeutics (VTGN) Accused of Misleading Investors, Stock Plummets 80%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
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.
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: 0.702
Low
12.00
Averages
15.50
High
19.00
Current: 0.702
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.
