#United States #New York #Securities Law #Faruqi & Faruqi #Vistagen Therapeutics

Vistagen Therapeutics Under Investigation by Faruqi & Faruqi, LLP

In a significant move for investors, the prominent national securities law firm, Faruqi & Faruqi, LLP, has initiated an investigation into Vistagen Therapeutics, Inc. This inquiry stems from the company's alleged violations of federal security laws regarding its trial results for an investigational drug designed to treat social anxiety disorder.

Background on Vistagen Therapeutics

Vistagen Therapeutics, Inc., listed under the ticker VTGN, has garnered attention due to its research and development of therapies targeting mental health issues. Their primary focus has been on fasedienol, a pherine candidate currently assessed in clinical trials for its efficacy in treating social anxiety disorder. Investors had high hopes for the clinical outcomes of the PALISADE-3 trial, which represented a crucial juncture for the company.

The Allegations

Faruqi & Faruqi, LLP is looking into claims from investors who acquired Vistagen securities between April 1, 2024, and December 16, 2025. The investigation is a response to reported revelations about misleading statements made by Vistagen that may have contributed to the company's substantial stock dive following disappointing trial results. The investigation particularly focuses on allegations that executives of the company either made false claims or failed to disclose critical adverse facts about the Phase 3 PALISADE-3 trial.

On December 17, 2025, Vistagen announced that its PALISADE-3 trial results did not meet the primary efficacy endpoint, which was to demonstrate statistically significant improvement in anxiety reduction compared to the placebo. This announcement triggered a drastic decrease in the company's stock price, plunging by 80.27% to close at a mere $0.86,
causing substantial financial losses for investors who had faith in the company's purported advancements in therapeutic treatments.

Legal Process and Investor Actions

As part of the ongoing legal proceedings, Faruqi & Faruqi are actively encouraging investors who are concerned about these developments to reach out for counsel. Investors who feel they’ve been misled and who are considering joining the class action lawsuit are reminded about the March 16, 2026, deadline to seek the position of lead plaintiff in this federal securities class action.
The role of a lead plaintiff is critical as they represent the interests of all affected shareholders and play an important part in directing the litigation process. It’s important to note that investors can still pursue a claim without serving as a lead plaintiff.

Encouragement for Affected Investors

In an official statement, partner Josh Wilson emphasized the significance of investor input and urged those with additional information regarding Vistagen's actions to come forward. This includes not only investors but also whistleblowers and former employees who might provide crucial insight into the company's decision-making processes during the disputed period.

Conclusion

Given the serious implications of these allegations and the potential for significant investor recovery, it is crucial for affected parties to consider their options seriously. The involvement of a well-regarded firm like Faruqi & Faruqi helps ensure that investors receive the necessary representation and information critical to protecting their financial interests. For further information, investors are encouraged to visit the firm’s website or contact partner Josh Wilson directly to discuss individual cases and gather more insights about their rights as shareholders.

In this rapidly evolving scenario, staying informed and proactive remains essential for anyone invested in Vistagen Therapeutics, as the ramifications of these findings can heavily influence not only the company’s future but also the financial wellbeing of its investors.