LOS ANGELES, Sept. 01, 2026 (GLOBE NEWSWIRE) — The Portnoy Law Firm advises Fractyl Health, Inc., (“Fractyl” or the “Company”) (NASDAQ: GUTS) investors of a class action on behalf of investors that bought securities between January 13, 2025 – January 29, 2026, inclusive (the “Class Period”). Fractyl investors have until October 20, 2026 to file a lead plaintiff motion.

Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 310-692-8883 or email: lesley@portnoylaw.com, to discuss their legal rights, or join the case via https://portnoylaw.com/fractyl-health-inc. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.

Fractyl Health is a metabolic therapeutics company that develops therapies for the treatment of type 2 diabetes (T2D) and obesity.  Fractyl Health is allegedly developing, among other things, the Revita DMR System (“Revita”), an outpatient procedural therapy designed to durably modify duodenal dysfunction, a pathologic consequence of a high-fat and high-sugar diet.  The complaint alleges that during the Class Period, defendants were highly focused on advancing Revita through Fractyl Health’s “REMAIN-1” study, evaluating Revita’s efficacy in maintaining weight loss following the discontinuation of GLP-1 receptor agonist drug therapy.  The REMAIN-1 study is allegedly designed to include three distinct patient cohorts: (i) the REVEAL-1 Cohort; (ii) the REMAIN-1 Midpoint Cohort; and (iii) the REMAIN-1 Pivotal Cohort.

The Fractyl Health class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed 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, during pre-market hours, Fractyl Health issued a press release announcing six-month data from the REMAIN-1 Midpoint Cohort, allegedly disclosing that “[a]cross the prespecified efficacy population . . . , Revita-treated patients experienced a 4.5% weight regain vs 7.5% in the sham arm at 6 months,” representing a significantly more modest efficacy result than previously disclosed results and falling short of investor expectations, while stating that “[t]he Midpoint Cohort was not designed to be sufficiently powered for efficacy analysis.”  The complaint alleges that Fractyl Health also hosted a conference call with investors and analysts that same day during pre-market hours.  During the call, Fractyl Health’s Chief Executive Officer, Harith Rajagopalan, allegedly indicated that issues at one of the REMAIN-1 Midpoint Cohort study sites, which “had higher-than-expected regain across both arms,” were at least partly to blame for the cohort’s disappointing six-month efficacy results.  On this news, the price of Fractyl Health stock fell more than 68%, according to the complaint.

During post-market hours on January 29, 2026, Canaccord Genuity issued a report on Fractyl Health, allegedly providing additional color on the site-specific issue identified by Rajagopalan.  According to the complaint, the Canaccord Genuity report cited a “call with mgmt [that] clarified some of the key FAQs around the ‘outlier site,’” stating that Fractyl Health “attribute[d] the variability in the 1 outlier site (out of 6) to a relatively less robust diet and lifestyle counseling program,” noting that “[t]his site was the first to enroll and hadn’t yet set up a dietary center.”  Morgan Stanley also issued a report on Fractyl Health during post-market hours, allegedly downgrading Fractyl Health to an “Equal-weight” from “Overweight” rating and cutting its price target on Fractyl Health’s stock to $2.00 from $8.00.  The Morgan Stanley report allegedly characterized the latest REMAIN-1 Midpoint Cohort study results as “[d]isappoint[ing],” noting that the “[r]andomized 6mo results for Revita in weight maintenance showed trends, but fell short of expectations, raising questions.”  The complaint alleges that the Morgan Stanley report noted that “Revita patients experienced 4.5% weight regain (+1.5% in open label cohort) vs. 7.5% sham (~10% expected),” which “represents a 40% delta vs. sham, below the 50% threshold, suggesting more modest benefits, though was negatively impacted by a single site.”  The Morgan Stanley report allegedly concluded that “[g]iven our more cautious view, we lower our probability of success for Revita to 35% from 50%, previously” and “now model peak risk-adjusted worldwide sales of ~$490M in 2035 (previously $700M).”  On this news, the price of Fractyl Health stock fell more than 21% further, according to the complaint.

The Portnoy Law Firm represents investors in pursuing claims caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.

Lesley F. Portnoy, Esq.
Admitted CA, NY and TX Bar
lesley@portnoylaw.com
310-692-8883
www.portnoylaw.com

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