Faruqi & Faruqi LLP Issues Important Notice to Vistagen Investors Over Pending Class Action Lawsuit

New York, January 18, 2026 — The national securities law firm Faruqi & Faruqi, LLP, recognized for advocating on behalf of investors, has issued a formal shareholder action notice informing shareholders of Vistagen Therapeutics, Inc. (NASDAQ: VTGN) about a newly filed federal securities class action lawsuit and important upcoming deadlines.

Law Firm Encourages Action from Affected Shareholders

Faruqi & Faruqi is actively investigating potential legal claims against Vistagen Therapeutics and is urging anyone who invested in the company’s securities between April 1, 2024 and December 16, 2025 to review their rights. Shareholders who believe they may have suffered financial losses during this period are encouraged to contact the firm directly to discuss possible legal options.

The firm’s Senior Partner, James “Josh” Wilson, specifically invites affected investors to reach out with questions or to discuss serving as a lead plaintiff in the lawsuit. Serving as lead plaintiff can give an investor a role in directing the lawsuit on behalf of all class members.

Details of the Allegations Against Vistagen

The class action complaint alleges that Vistagen and certain of its executives violated federal securities laws by making false or misleading statements and failing to disclose material adverse information about the company’s Phase 3 clinical trial called PALISADE-3, which was designed to evaluate fasedienol, an investigational drug intended to treat social anxiety disorder.

According to the legal filing, the company’s public statements failed to accurately inform investors about the risks and performance of the PALISADE-3 trial. This purported misinformation allegedly contributed to inflated share prices before the trial results were released.

Impact of Clinical Trial Results

On December 17, 2025, before the stock market opened, Vistagen announced that its PALISADE-3 study failed to achieve its primary efficacy endpoint—meaning it did not show statistically significant improvements in reducing anxiety compared to a placebo. When this news became public, Vistagen’s stock price dropped significantly. This steep decline caused financial harm to many shareholders.

The stock fell by approximately 80% following the announcement, closing at around $0.86 on December 17, 2025—a dramatic drop from its prior levels.

Deadline for Lead Plaintiff Motions

Under the federal securities laws, investors who wish to be considered as a lead plaintiff in the class action must file a motion with the court by March 16, 2026. The notice reminds shareholders that choosing to serve as a lead plaintiff is optional and investors may opt to remain absent class members if they prefer.

Being a lead plaintiff does not negatively impact an investor’s ability to recover, but it does allow that individual to play a more central role in guiding the litigation on behalf of all class members.

What This Means for Investors

Legal actions like this are designed to hold companies and executives accountable when they fail to provide accurate, complete information to the market. If successful, a class action lawsuit may lead to a financial recovery for affected shareholders who suffered losses because of alleged misrepresentations.

Faruqi & Faruqi’s notice emphasizes that investors should act promptly if they believe they have been harmed, as missing the filing deadline could affect their rights in the litigation. Investors with additional details, documents, or insights about Vistagen’s conduct in this matter are also encouraged to share that information with the firm.

Who Is Faruqi & Faruqi?

Faruqi & Faruqi, LLP is a national securities litigation firm with offices across the United States, including New York, Pennsylvania, California, and Georgia. Since its founding in 1995, the firm has represented investors in numerous high-profile securities litigation matters and has recovered substantial sums on behalf of its clients.

The notice also provides multiple avenues for investors to contact the firm, including direct phone lines to partner James (Josh) Wilson.

Next Steps for Potential Class Members

Here’s what investors can do if they believe they qualify:

• Review the Class Period: Confirm that you purchased or acquired Vistagen securities between April 1, 2024 and December 16, 2025.
• Contact Faruqi & Faruqi: Reach out to the firm to discuss your investment and losses.
• Consider Lead Plaintiff Role: Decide whether you want to file a motion to serve as lead plaintiff by the March 16, 2026 deadline.
• Stay Informed: Monitor updates from the law firm for further developments in the case.

About Vistagen Therapeutics

Vistagen Therapeutics, Inc. is a clinical-stage biopharmaceutical company focused on developing therapies for neuropsychiatric and neurological disorders. The company’s Phase 3 PALISADE-3 trial for fasedienol was a major milestone in its efforts to bring a novel treatment for social anxiety disorder to market.

The outcome of this lawsuit may be closely watched by investors and other companies in the biotech sector, as it highlights the legal risks associated with clinical trial communications and investor disclosures.

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