Law firm Levi & Korsinsky has filed a class action lawsuit against Vistagen Therapeutics, alleging securities fraud in connection with the company's Phase 3 PALISADE-3 clinical trial. The trial, which evaluated fasedienol as a treatment for social anxiety disorder, failed to meet its primary endpoint, prompting the December 17, 2025 announcement that triggered a significant market decline.
Vistagen's stock experienced a sharp contraction following the trial failure disclosure, declining more than 80 percent from $4.36 to $0.86 per share. The lawsuit targets investors who held securities during the period between April 1, 2024 and December 16, 2025, alleging that the company made misleading statements or omissions regarding the trial's progress and likelihood of success.
Investors seeking to participate in the class action have until March 16, 2026 to submit claims. The lawsuit represents an attempt to recover losses sustained by shareholders who purchased Vistagen stock during the relevant period. The case centers on whether the company's public disclosures adequately reflected known risks associated with the clinical development program.