Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses In Fractyl To Contact Him Directly To Discuss Their Options

If you purchased or acquired securities in Fractyl between January 13, 2025 and January 29, 2026 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).

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New York, New York--(Newsfile Corp. - August 28, 2026) - Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Fractyl Health, Inc. ("Fractyl" or the "Company") (NASDAQ: GUTS) and reminds investors of the October 20, 2026 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.

Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.

As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (i) Revita was less effective than Defendants had led investors to believe, and/or operational issues at one or more of the REMAIN-1 Midpoint Cohort's clinical sites compromised the integrity of its efficacy results; (ii) accordingly, Revita's clinical, regulatory, and commercial prospects were overstated, as was the REMAIN-1 Midpoint Cohort's ability to assess Revita's efficacy; and (iii) as a result, Defendants' public statements were materially false and misleading at all relevant times.

On January 29, 2026, Fractyl issued a press release announcing six-month data from the REMAIN-1 Midpoint Cohort, disclosing that "Revita-treated patients experienced a 4.5% weight regain vs 7.5% in the sham arm at 6 months" and that "[t]he Midpoint Cohort was not designed to be sufficiently powered for efficacy analysis," and hosted a conference call during which CEO Rajagopalan indicated that issues at one of the study sites "had higher-than-expected regain across both arms." On this news, Fractyl's stock price fell $1.245, or 68.03%, to close at $0.585 per share on January 29, 2026.

On January 30, 2026, following the release of post-market Canaccord Genuity and Morgan Stanley reports, with Morgan Stanley downgrading the Company to "Equal-weight" from "Overweight" and cutting its price target to $2.00 from $8.00, characterizing the results as "[d]isappoint[ing]." On this news, Fractyl's stock price fell $0.125, or 21.37%, to close at $0.46 per share on January 30, 2026.

The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.

Faruqi & Faruqi, LLP also encourages anyone with information regarding Fractyl's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.

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Frequently Asked Questions (FAQ) for Investors Regarding the Fractyl Securities Class Action Lawsuit:

What is the Fractyl securities fraud lawsuit about?

Faruqi & Faruqi, LLP has filed a securities class action lawsuit against Fractyl Health, Inc. (NASDAQ: GUTS) and certain of its officers and directors on behalf of investors who purchased Fractyl securities during the Class Period. The complaint alleges that Defendants made materially false and misleading public statements regarding Revita, the Company's investigational treatment, by allegedly overstating its clinical effectiveness and the ability of the REMAIN-1 Midpoint Cohort to assess its efficacy. The lawsuit further alleges that operational issues at one or more clinical study sites may have compromised the integrity of the Midpoint Cohort's efficacy results, and that Revita's clinical, regulatory, and commercial prospects were accordingly overstated. On January 29, 2026, Fractyl allegedly disclosed that the Midpoint Cohort "was not designed to be sufficiently powered for efficacy analysis" and that site-level issues had affected results across study arms, causing the Company's stock price to fall approximately 68% in a single trading session.

Who may be eligible to participate in the lawsuit?

Investors who purchased or otherwise acquired Fractyl Health, Inc. (NASDAQ: GUTS) securities on the NASDAQ exchange between January 13, 2025 and January 29, 2026, inclusive, may be eligible to participate in this lawsuit as class members. Eligibility is not limited to those who seek appointment as lead plaintiff; any investor who purchased Fractyl securities during the Class Period and suffered losses may potentially share in any recovery obtained on behalf of the class. Investors are encouraged to review their trading records to determine whether their purchases fall within the applicable Class Period. Participation in a class action does not require that an investor take any active role in the litigation beyond potentially providing information if contacted.

What is a lead plaintiff, and how can I seek appointment?

A lead plaintiff is a court-appointed representative who acts on behalf of all class members in directing the litigation, including selecting and working with class counsel to advance the interests of the investor class. Any class member who suffered losses during the Class Period may move the court for appointment as lead plaintiff, but investors are not required to serve in this role in order to be eligible to share in any recovery the litigation may produce. Under the Private Securities Litigation Reform Act, a motion for appointment as lead plaintiff must be filed no later than October 20, 2026. Investors who wish to be considered for the lead plaintiff role should consult with qualified securities counsel promptly, as this deadline is fixed by statute and is not typically subject to extension.

Why should investors contact Faruqi & Faruqi, LLP?

Faruqi & Faruqi, LLP has represented investors in securities litigation for decades and has recovered hundreds of millions of dollars for shareholders. Investors who purchased Fractyl securities during the Class Period may contact the firm to discuss their legal rights, potential claims, and the lead plaintiff process at no cost or obligation.

Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/311822

Source: Faruqi & Faruqi LLP