Pomerantz Law Firm Launches Investigation into Insmed Incorporated on Behalf of Investors Following Stock Drop

On January 8, 2026, Pomerantz LLP announced its investigation into Insmed Incorporated (NASDAQ: INSM) following significant concerns raised about the company's practices related to securities fraud. This comes after Insmed reported disappointing results from its Phase 2b BiRCh study of brensocatib, a drug aimed at treating chronic rhinosinusitis without nasal polyps (CRSsNP).

In a press release issued on December 17, 2025, Insmed disclosed that the study did not meet any of the key efficacy endpoints set for either the 10 mg or 40 mg treatment arms. As a direct consequence of these results, the company decided to cease any further development of brensocatib. The news prompted a dramatic reaction from the market, as Insmed's stock plummeted by $31.91 per share, translating to a staggering 16.08% decrease, closing at $166.55 per share on December 18, 2025.

The investigation focuses on whether Insmed and its leadership, including certain officers and directors, may have engaged in unlawful business practices, particularly regarding the disclosure of essential information related to the efficacy of brensocatib and its potential impact on the company's financial standing. Pomerantz LLP is particularly focused on understanding if investors were misled in ways that affected their investment strategies and financial outcomes. Investors of Insmed who feel their rights may have been compromised are encouraged to reach out to attorney Danielle Peyton at Pomerantz LLP for more information about their legal rights and the option to join a class action lawsuit.

Pomerantz LLP, recognized as one of the foremost law firms specializing in corporate, securities, and antitrust class litigation, has a lengthy history of fighting for investor rights. With an impressive record spanning over 85 years, the firm was founded by Abraham L. Pomerantz, who is often credited with pioneering the field of securities class actions. Today, they continue to uphold this legacy by striving for justice on behalf of infracted class members, having recovered numerous multimillion-dollar damages awards in the past.

Investors are advised to closely monitor further developments regarding Insmed and the ongoing investigation. As the details surrounding the failure of brensocatib's clinical trials unfold, additional implications may emerge regarding the company's future direction and the safety of investors’ assets.

Participating investors can find more information about joining the class action suit by reaching out to Pomerantz LLP directly. This may provide them the avenue to recover losses attributed to potential misleading communications regarding the company's drug development progress and its overarching impact on the stock performance.

As the situation evolves, updates will be made available through both Pomerantz LLP and various financial news outlets. The firm emphasizes that prior results in similar cases do not guarantee similar outcomes and encourages those affected to seek legal counsel promptly to ensure their rights remain protected.

Topics Financial Services & Investing)

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