A class action lawsuit was filed against Ventyx Biosciences (NASDAQ:VTYX) on March 1, 2024. The plaintiffs (shareholders) alleged that they bought Ventyx Biosciences stock at artificially inflated prices between October 21, 2021 and November 6, 2023 (Class Period) and are now seeking compensation for their financial losses. Investors who bought VTYX stock during that period can learn about joining the lawsuit here: http://zlk.com/wp-content/uploads/2024/03/VTYX-Complaint.pdf?wire=16
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Ventyx is a clinical-stage biopharmaceutical company focused on developing innovative oral medicines for treating autoimmune and inflammatory disorders. Ventyx’s lead clinical product candidate is VTX958, a selective allosteric tyrosine kinase type 2 inhibitor for psoriasis, psoriatic arthritis, and Crohn’s disease.
The plaintiffs maintain that the company and three of its senior officers deceived investors by repeatedly lying and withholding vital information about the company’s business practices and prospects during the Class Period. Importantly, the lawsuit maintains that the defendants included untrue statements and were negligent in preparing the IPO (initial public offering) documents.
The truth was revealed on November 6, 2023, after market hours, when Ventyx issued a press release stating that the results from the Phase 2 SERENITY Trial did not meet its internal target to support the advancement of VTX958 in plaque psoriasis. As such, the company decided to discontinue all ongoing activities related to the study effective immediately.
In stark contrast, during the Class Period, the defendants reiterated the importance and positive progress from pre-clinical trials related to VTX958, calling the lead candidate a potential “best-in-class allosteric TYK2 inhibitor, with development opportunities in multiple immune-mediated diseases encompassing large markets currently dominated by biologics.”
As per the class action lawsuit, Ventyx caused VTYX stock to trade at artificially inflated prices by knowingly omitting truthful information about the efficacy of VTX958 in the treatment of psoriasis.
Notably, on November 7, VTYX stock plunged 80.6%, causing massive damage to shareholders’ returns.
