GUTS Shareholder Alert: October 20, 2026 Lead Plaintiff Deadline in Fractyl Health, Inc. Securities Class Action - Contact Levi & Korsinsky

Wall Street's reassessment of Fractyl Health was swift: Morgan Stanley cut its price target from $8.00 to $2.00 and downgraded GUTS to Equal-weight, while Canaccord Genuity addressed concerns surrounding an "outlier site" in the Revita DMR data.

NEW YORK, Sept. 9, 2026 /PRNewswire/ -- Levi & Korsinsky, LLP notifies investors in Fractyl Health, Inc. (NASDAQ: GUTS) that a securities class action has been filed on behalf of shareholders who purchased securities between January 13, 2025 and January 29, 2026. Find out if you could qualify to recover your per-share losses. You may also contact Joseph E. Levi, Esq. at [email protected] or (212) 363-7500.

GUTS closed at $0.46 on January 30, 2026, down from a $1.83 close on January 28, 2026, a cumulative decline of approximately 74.86%, or $1.37 per share, across two sessions. The last day to move for lead plaintiff is October 20, 2026.

Initial Analyst Optimism

Coverage indicated confidence in Revita's commercial potential heading into 2026. Morgan Stanley carried an Overweight rating with an $8.00 price target and modeled a 50% probability of success for Revita, with peak risk-adjusted worldwide sales of roughly $700 million in 2035.

The Downgrades Begin

After Fractyl reported six-month REMAIN-1 Midpoint Cohort results on January 29, 2026, Morgan Stanley downgraded GUTS to Equal-weight from Overweight and cut its price target to $2.00 from $8.00. Analysts noted the randomized six-month results "showed trends, but fell short of expectations, raising questions," and lowered the probability of success for Revita to 35% from 50%. Peak risk-adjusted sales modeling was reduced to approximately $490 million.

Analyst Coverage Timeline

• Revita-treated patients showed 4.5% weight regain versus 7.5% in the sham arm, a roughly 40% delta that coverage described as below the 50% threshold
• Canaccord Genuity reported that management attributed variability at one outlier site out of six to a "relatively less robust diet and lifestyle counseling program"
• That site "was the first to enroll and hadn't yet set up a dietary center," according to the same report
• Morgan Stanley moved "to the sidelines," citing a more cautious view of Revita's potential
• Shares fell $1.245, or 68.03%, on January 29, 2026, then a further $0.125, or 21.37%, on January 30, 2026

"When analyst expectations are built on incomplete or misleading company disclosures, the resulting corrections can cause significant investor harm. Here, the complaint alleges that operational problems at a single REMAIN-1 study site were not disclosed until after Wall Street had already priced in stronger efficacy." -- Joseph E. Levi, Esq.

Why Analyst Shifts Matter for Investors

The lawsuit maintains that Fractyl and two officers overstated Revita's clinical prospects while allegedly omitting site-level issues that compromised the integrity of the Midpoint Cohort's efficacy results. Plaintiffs assert that shareholders who purchased at prices reflecting the earlier data suffered losses when that information reached the market.

Submit your information here or call (212) 363-7500.

WHY LEVI & KORSINSKY — Ranked in ISS Securities Class Action Services' Top 50 Report for seven consecutive years, Levi & Korsinsky, LLP is a nationally recognized leader in shareholder rights litigation. With a team of over 70 professionals, the firm has recovered hundreds of millions of dollars for investors. Investors who suffered losses have until October 20, 2026 to seek appointment as lead plaintiff.

Frequently Asked Questions About the GUTS Lawsuit

Q: How much did GUTS stock drop? A: Shares fell $1.245, or 68.03%, on January 29, 2026, then a further $0.125, or 21.37%, on January 30, 2026. Investors who purchased shares during the Class Period at artificially inflated prices and suffered losses may be eligible to seek compensation. Investors who purchased shares during the Class Period at artificially inflated prices and suffered losses may be eligible to seek compensation.

Q: What specific misstatements does the GUTS lawsuit allege? A: The complaint alleges Fractyl Health, Inc. made materially false or misleading statements regarding Revita DMR's clinical efficacy and the integrity of REMAIN-1 Midpoint Cohort results during the Class Period. When the six-month data and the outlier study site issue were disclosed, the stock price declined sharply.

Q: What court was the GUTS class action filed in? A: The case was filed in the United States District Court for the Southern District of New York, governed by the Private Securities Litigation Reform Act of 1995.

Q: What do GUTS investors need to do right now? A: Investors may gather brokerage records showing purchase dates, share quantities, and prices paid. Submit your information for a no-cost, no-obligation evaluation of your potential recovery. No immediate action is required to remain eligible as an absent class member.

Q: What is a lead plaintiff and why does it matter? A: A lead plaintiff is the investor appointed by the court to represent the entire class. Lead plaintiffs are typically investors with the largest documented losses. Being appointed does not increase individual recovery but gives direct oversight of how the case is run.

Q: What if I already sold my GUTS shares -- can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought during the Class Period and sold at a loss may still be eligible to participate.

Q: What does it cost me to participate? A: There is no upfront cost to submit your information and review whether you may be eligible to recover. Should you choose to participate in the securities class action, they are generally handled on a contingency basis, with any attorneys' fees and expenses subject to court approval.

Q: What if I live outside the United States? A: U.S. securities class actions generally cover purchases on U.S. exchanges regardless of the investor's country of residence.

CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
[email protected]
Tel: (212) 363-7500
Fax: (212) 363-7171

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SOURCE Levi & Korsinsky, LLP