Skye Bioscience, Inc. Faces Securities Law Violation Lawsuit

LOS ANGELES, Jan. 19, 2026 – Skye Bioscience, Inc., a clinical-stage biotechnology company listed on the NASDAQ under the ticker SKYE, is the subject of a newly announced class action lawsuit alleging violations of U.S. federal securities laws. This legal action is being highlighted by the DJS Law Group, which is encouraging affected shareholders to discuss their rights and options with experienced securities litigation attorneys.

The lawsuit, filed under the Securities Exchange Act of 1934, claims that Skye and certain of its officers made false and misleading statements to the market over a defined “class period.” As a result, investors who purchased SKYE shares during this period may have suffered significant financial losses.

Understanding the Allegations Against Skye Bioscience

The class action lawsuit alleges that Skye violated specific provisions of the Securities Exchange Act, including Sections 10(b) and 20(a), and Rule 10b-5. These regulations prohibit companies and individuals from engaging in fraud or making materially misleading statements in connection with the purchase or sale of securities.

According to the complaint detailed in the lawsuit:

• Skye’s public statements about its business operations and prospects were materially false and misleading.
• The company failed to disclose that its lead drug candidate, nimacimab, did not demonstrate the level of effectiveness previously communicated to investors.

These alleged misrepresentations are central to the lawsuit, as they are claimed to have artificially inflated Skye Bioscience’s stock price during the class period. When the true performance of nimacimab became known, observers say the share price suffered losses, potentially harming investors.

The “Class Period” and Investor Losses

The lawsuit defines the class period as stretching from November 4, 2024 through October 3, 2025. Investors who acquired Skye shares during this timeframe are included in the class and may be entitled to participate in the lawsuit.

The complaint claims that throughout this class period, Skye’s executives made positive and encouraging statements about nimacimab’s clinical performance and overall business prospects that were not supported by data or were misleading given internal information the company possessed at the time.

These alleged misrepresentations materially impacted the company’s stock price, and when more accurate or complete information entered the market, SKYE shares reportedly declined significantly, resulting in losses for investors.

What Skye Bioscience Does: A Clinical-Stage Biotech Firm

Skye Bioscience is a biotechnology company primarily focused on developing pharmaceutical solutions for obesity, metabolic diseases, and other conditions. Its lead product candidate during the class period was nimacimab, a therapy being evaluated for its potential to treat obesity based on certain biological mechanisms. Although early results had been described as promising, later data – including Phase 2 studies – indicated that nimacimab did not meet its primary endpoints to the extent previously suggested.

This discrepancy between earlier public statements about nimacimab and later clinical results is the core of the investors’ claims, as it forms the basis of the alleged securities violation.

What Happened With Nimacimab?

In October 2025, Skye released topline data from its Phase 2a clinical trial, revealing that nimacimab did not achieve its primary goal of producing statistically significant weight loss compared to placebo. This disclosure reportedly caused Skye’s stock price to plunge — with some news reports indicating drops of up to 60% on the day of the announcement.

Investors allege that prior to this disclosure, Skye misrepresented or overstated nimacimab’s efficacy and its clinical and commercial prospects. The lawsuit asserts these statements may have misled the market.

The Role of Law Firms and Legal Notices

Several prominent law firms have issued notices and alerts to shareholders of Skye Bioscience regarding this class action. These include the DJS Law Group, as announced in the PR Newswire release on January 19, 2026, as well as other firms like Levi & Korsinsky, The Schall Law Firm, Berger Montague, Rosen Law Firm, and others. Each firm is offering information, evaluation, and legal support to investors interested in the case.

These notices do not necessarily mean that a firm is directly representing shareholders in court yet, but rather that they are formally notifying investors of the existence of the securities class action and inviting them to discuss their rights, including the option to seek appointment as lead plaintiff.

Lead Plaintiff and Deadlines

A lead plaintiff is a representative investor appointed by the court to act on behalf of the entire class. The appointment process is governed by federal securities laws and aims to select a class member with significant losses who can adequately represent others in the case.

Most notices specify that the deadline to seek lead plaintiff status in this action is January 16, 2026, which is a critical date for those wishing to play an active role in the proceedings. However, investors do not need to be lead plaintiff to participate or share in potential recovery; they can remain “absent class members” but still benefit from the outcome if the case results in awards or settlements.

Why This Lawsuit Matters to Investors

Class action lawsuits of this nature are common in situations where investors believe they were misled by corporate statements that significantly affect stock valuation — especially in biotechnology and pharmaceutical industries where clinical data and drug development outcomes heavily influence investor expectations.

These lawsuits serve dual purposes:

• To potentially recover financial losses for investors harmed by misleading statements.
• To hold companies accountable for transparency and compliance with federal securities laws.

In cases where companies settle or are found liable, plaintiffs may receive compensation derived from settlements or judgments. However, such outcomes are not guaranteed, and results can vary based on case developments, negotiations, and court decisions.

What Happens Next?

Now that the lawsuit has been publicized and relevant deadlines set, the next steps in the legal process typically involve:

• Pleadings and motions: Lawyers for both sides may file additional legal documents outlining their positions and arguments.
• Discovery: Each side exchanges evidence, documents, and depositions relevant to the case.
• Settlement talks: Many securities class actions are resolved through negotiation before trial, although some do proceed to full litigation.

Investors and class members will receive updates as the case unfolds. Those with questions are encouraged to contact legal counsel representing the case or seek independent legal advice.

Investor Resources and Actions

If you are an investor who purchased Skye Bioscience shares during the class period defined by the lawsuit (Nov. 4, 2024 – Oct. 3, 2025), the following steps may help clarify your options:

1. Review notices from law firms or the court about the lawsuit.
2. Consult with an experienced securities litigation attorney to assess your rights and potential losses.
3. File any required documentation before the lead plaintiff deadline to participate actively if desired.
4. Stay informed about case developments through official updates from counsel or the court.

While participating in class action litigation does not promise financial recovery, it ensures that your interests are represented in the legal process.

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