Faruqi & Faruqi LLP Issues Reminder to Vistagen Investors About Upcoming Securities Class Action Deadline

New York, United States – A leading national securities law firm, Faruqi & Faruqi, LLP, has issued a formal reminder to investors who purchased shares of Vistagen Therapeutics, Inc. (NASDAQ: VTGN) that an important legal deadline is approaching. The firm is encouraging investors who may have experienced significant financial losses to review their legal rights and consider participating in an ongoing securities class action lawsuit filed against the company.

The deadline to apply for the role of lead plaintiff in the lawsuit is March 16, 2026. Investors who purchased or otherwise acquired securities of Vistagen during the alleged class period and suffered financial losses may have the opportunity to seek compensation through the federal court system.

Background of the Securities Class Action Lawsuit

The securities class action lawsuit alleges that Vistagen Therapeutics and certain executives may have violated federal securities laws by making statements that were allegedly false or misleading to investors. According to the complaint, the company may have failed to disclose certain critical information about one of its major drug development programs.

The case centers around Vistagen’s Phase 3 clinical trial known as PALISADE-3, which evaluated an investigational drug candidate called fasedienol. The drug is being developed as a treatment for social anxiety disorder (SAD), a condition that affects millions of people worldwide.

Investors claim that the company allegedly provided optimistic or incomplete information regarding the clinical trial and the potential effectiveness of the drug. When new information became available, it reportedly led to a sharp reaction in the financial markets and potentially significant losses for shareholders.

Law firms representing investors believe that these circumstances may constitute violations of U.S. securities laws designed to protect investors from misleading corporate disclosures.

Who May Be Affected by the Lawsuit

The lawsuit is intended to represent investors who purchased or acquired Vistagen securities during the alleged class period, which spans:

April 1, 2024 through December 16, 2025

Individuals and institutions who purchased shares during this time frame may be eligible to participate in the class action if they experienced financial losses tied to the company’s stock performance.

Investors who suffered losses exceeding $50,000 are particularly encouraged to contact legal representatives to explore their options.

Understanding the Role of the Lead Plaintiff

In securities class action lawsuits, the court typically appoints a lead plaintiff to represent the interests of all affected shareholders. The lead plaintiff is generally the investor or group of investors with the largest financial stake in the outcome of the litigation.

The responsibilities of the lead plaintiff include:

• Working with legal counsel to oversee the litigation process
• Helping ensure that the interests of all class members are represented
• Participating in major strategic decisions related to the case
• Communicating with attorneys about settlement discussions or trial strategy

However, it is important to note that investors do not need to serve as lead plaintiff in order to be eligible for potential recovery. Those who choose not to apply for the role can still remain members of the class and may benefit if the case results in a settlement or court award.

Allegations Related to the PALISADE-3 Clinical Trial

The lawsuit’s allegations focus heavily on the development and clinical testing of fasedienol, a drug candidate designed to treat social anxiety disorder.

Fasedienol belongs to a class of compounds called pherines. These compounds are designed to act on nasal chemosensory receptors and may influence neural pathways associated with emotional responses such as fear and anxiety.

Vistagen had previously highlighted the potential of fasedienol as a promising treatment option that could provide rapid relief from symptoms of social anxiety without some of the side effects associated with traditional medications.

The PALISADE-3 trial represented one of the final steps required before the drug could potentially seek regulatory approval from health authorities.

However, the lawsuit alleges that investors were not fully informed about potential issues or risks associated with the trial results or development process. Plaintiffs claim that when the market eventually received updated information about the trial’s performance, the company’s stock price experienced significant volatility.

This market reaction allegedly caused financial losses for investors who relied on earlier statements about the company’s progress.

Impact on Investors and the Stock Market

Biotechnology companies often rely heavily on clinical trial outcomes to determine their market valuation. Positive results can drive significant gains in stock prices, while disappointing data or regulatory setbacks may lead to rapid declines.

In the case of Vistagen, investors were closely monitoring developments related to fasedienol and the PALISADE-3 study.

When information about the trial and its outcomes became clearer, the stock market reportedly responded strongly. According to the lawsuit, investors who purchased shares before the disclosure may have suffered losses when the company’s stock price declined.

Such fluctuations are not uncommon in the biotechnology sector, but securities laws require companies to provide accurate and complete information so that investors can make informed decisions.

Legal Rights for Affected Investors

Investors who believe they were impacted by the alleged conduct may have several legal options available to them. These options include:

• Joining the class action lawsuit as a class member
• Seeking appointment as the lead plaintiff
• Consulting with a securities attorney to evaluate potential claims
• Monitoring the case outcome for potential settlements

Legal experts emphasize that participating in a class action lawsuit generally does not require investors to pay upfront legal fees. In most cases, attorneys representing investors work on a contingency basis and are compensated only if the case results in a financial recovery.

Faruqi & Faruqi LLP and Its Role in Securities Litigation

Faruqi & Faruqi LLP is widely recognized as one of the prominent law firms specializing in securities litigation and investor protection cases. The firm has offices across several major U.S. states including New York, Pennsylvania, California, and Georgia.

Since its founding in 1995, the firm has represented thousands of investors and has reportedly recovered hundreds of millions of dollars in settlements and verdicts.

The firm’s securities litigation team focuses on identifying potential misconduct by publicly traded companies and helping investors pursue compensation when they believe corporate disclosures may have been misleading or incomplete.

In the Vistagen case, attorneys are actively reviewing evidence and encouraging affected investors to come forward.

Encouragement for Whistleblowers and Former Employees

In addition to contacting investors, the law firm has also invited individuals with relevant information about the company’s conduct to come forward. This may include:

• Former employees
• Corporate insiders
• Industry analysts
• Shareholders with knowledge of company disclosures

Whistleblowers often play a key role in securities litigation by providing evidence that may help clarify how corporate decisions and disclosures were made.

How the Securities Class Action Process Works

Class action lawsuits are designed to allow large groups of investors with similar claims to pursue legal action collectively.

The process typically follows several steps:

1. Filing of the Complaint

Attorneys file a lawsuit in federal court alleging violations of securities laws.

2. Appointment of Lead Plaintiff

The court selects the investor with the largest financial interest to represent the class.

3. Discovery Phase

Both sides gather documents, testimony, and evidence related to the allegations.

4. Motions and Legal Arguments

The court reviews legal arguments to determine whether the case should proceed.

5. Settlement or Trial

Many securities cases are resolved through negotiated settlements, although some proceed to trial.

Why Corporate Transparency Matters for Investors

Financial markets rely on accurate information to function properly. Investors depend on public companies to provide clear and truthful disclosures regarding their business operations, financial performance, and research developments.

When companies release information that is incomplete or misleading, it can undermine investor confidence and potentially distort market pricing.

Securities laws in the United States are designed to protect investors by requiring companies to disclose material information that could affect investment decisions.

Class action lawsuits such as the one involving Vistagen play a role in enforcing these legal standards.

Next Steps for Investors Before the Deadline

With the March 16, 2026 deadline approaching, investors who believe they may be affected are encouraged to review their investment records and seek legal guidance if necessary.

Key steps include:

• Confirming whether Vistagen shares were purchased during the class period
• Calculating potential financial losses
• Consulting a securities litigation attorney
• Determining whether to apply for lead plaintiff status

Investors who do not take action before the deadline may still remain part of the class but will lose the opportunity to seek appointment as lead plaintiff.

Broader Implications for the Biotechnology Industry

The case highlights the high stakes associated with pharmaceutical development and clinical trial results. Biotechnology companies frequently experience dramatic stock movements based on regulatory updates, clinical trial outcomes, and scientific data releases.

Because these developments can significantly impact investor confidence, companies must carefully balance scientific uncertainty with transparent communication.

Legal actions like this one serve as reminders of the importance of maintaining strong compliance practices and accurate investor disclosures.

Conclusion

The reminder issued by Faruqi & Faruqi LLP underscores the importance of investor awareness in securities litigation cases. Shareholders who purchased Vistagen securities between April 2024 and December 2025 may be eligible to participate in the class action lawsuit alleging violations of federal securities laws.

With the March 16, 2026 deadline approaching, affected investors have a limited window of time to seek the role of lead plaintiff or to review their legal rights.

While the lawsuit is still in its early stages, the outcome could potentially determine whether investors receive compensation for alleged financial losses related to the company’s disclosures and clinical trial developments.

As the case proceeds through the federal court system, investors and industry observers alike will continue to monitor developments closely.

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