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As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) ALTO-100 was less effective in treating MDD than Defendants had led investors to believe; (2) accordingly, ALTO-100's clinical, regulatory, and commercial prospects were overstated; (3) as a result, Alto's business and/or financial prospects were overstated; and (4) as a result, the Company's public statements were materially false and misleading at all relevant times.
On October 22, 2024, Alto issued a press release announcing topline results from the Phase 2b trial evaluating ALTO-100 as a treatment for MDD. That press release stated, in relevant part, that "ALTO-100 in patients with [MDD] did not meet its primary endpoint, assessed by a change from baseline in Montgomery-Åsberg Depression Rating Scale (MADRS), compared to placebo."
On this news, Alto's stock price fell $10.17 per share, or 69.99%, to close at $4.36 per share on October 23, 2024.
Analysts were quick to comment on the Company's announcement. For example, on October 22, 2024, Jeffries cut its price target for Alto to $17 from $33 and stated that ALTO-100's data raises questions around the Company's overall biomarker approach to CNS disorders and psychiatry.
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 who 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. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Alto's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
To learn more about the Alto Neuroscience class action, go to www.faruqilaw.com/ANRO or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
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SOURCE Faruqi & Faruqi, LLP
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