
Robbins LLP Urges GUTS Stockholders Who Lost Money Investing in Fractyl Health, Inc. to Contact the Firm for Information About Leading the Class Action
PRNewsWire
Published: Sep 11, 2026, 12:33 AM
Sentiment Analysis
Shareholder rights law firm Robbins LLP is informing investors that a class action lawsuit has been filed on behalf of individuals and entities who purchased or acquired Fractyl Health, Inc. (NASDAQ: GUTS) securities between January 13, 2025, and January 29, 2026.
Fractyl Health is a metabolic therapeutics company focused on developing treatments for type 2 diabetes and obesity. The complaint alleges that the company misled investors about the effectiveness and viability of its Revita DMR System.
The lawsuit claims that during the Class Period, defendants failed to disclose that Revita was less effective than represented, and that operational issues at clinical sites compromised the integrity of the efficacy results. Consequently, the company's clinical, regulatory, and commercial prospects, as well as its ability to assess Revita's efficacy, were overstated.
The complaint further alleges that on January 29, 2026, Fractyl Health announced six-month data from its REMAIN-1 Midpoint Cohort, revealing that Revita-treated patients experienced a 4.5% weight regain compared to 7.5% in the sham arm at 6 months. This result was significantly less impressive than previously disclosed and fell short of investor expectations. The company also noted that the Midpoint Cohort was not sufficiently powered for efficacy analysis.
Following these disclosures, Fractyl Health's stock price dropped by $1.245 per share, or 68.03%, closing at $0.585 on January 29, 2026. The same day, Morgan Stanley downgraded the stock to "Equal-weight" from "Overweight" and reduced its price target to $2.00 from $8.00. Fractyl Health's stock fell an additional 21.7% the next day, closing at $0.46 per share.
Investors who incurred significant losses during the Class Period and wish to be considered for lead plaintiff should contact Robbins LLP before the October 20, 2026 deadline. The firm is representing investors on a contingency fee basis.
Source: PRNewsWire
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