Investors in Fractyl Health have until Oct 20, 2026, to seek lead plaintiff role

New York, New York, Faruqi & Faruqi, LLP, a leading national securities law firm, is reminding investors in Fractyl Health, Inc. (NASDAQ: GUTS) of an important deadline: October 20, 2026, by which time those who purchased the company's securities between January 13, 2025, and January 29, 2026, can seek the role of lead plaintiff in a federal securities class action lawsuit.

The firm is investigating potential claims against Fractyl and its executives, alleging that the company and its management violated federal securities laws by making false or misleading statements and failing to disclose critical information. Specifically, the lawsuit claims that Revita, the company's investigational treatment, was less effective than what investors were led to believe. Additionally, operational issues at one or more of the REMAIN-1 Midpoint Cohort's clinical sites compromised the integrity of the efficacy results, leading to an overstatement of Revita's clinical, regulatory, and commercial prospects.

On January 29, 2026, Fractyl issued a press release disclosing that Revita-treated patients experienced a 4.5% weight regain, compared to a 7.5% regain in the sham arm at six months. The company also admitted that the Midpoint Cohort was not designed to be sufficiently powered for efficacy analysis. This news caused Fractyl's stock price to plummet by 68.03%, closing at $0.585 per share.

The following day, January 30, 2026, the stock price fell further by 21.37% after Canaccord Genuity and Morgan Stanley released reports downgrading the company and cutting their price targets. These reports characterized the results as "disappointing."

Faruqi & Faruqi, LLP is encouraging investors to contact partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310) to discuss their legal rights and potential claims. Any investor who purchased or acquired Fractyl securities during the specified period and suffered losses is eligible to participate in the lawsuit.

The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members and directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

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