Alto Neuroscience ($ANRO) IPO Misstatements, Phase 2b Failure, and Depression Drug Collapse Case

Court: N.D. California

Case: 3:25-cv-06105

• ANRO investors filed a claim against Alto Neuroscience for misleading the market about the clinical prospects of ALTO-100, overstating its biomarker-driven efficacy, and failing to warn about the risks tied to its lead depression treatment candidate.
• After ALTO-100 failed its Phase 2b trial and missed its primary endpoint, ANRO crashed 69.99% on October 23, 2024.
• ANRO investors can join this case to be notified about potential recovery.

Case Details:

Between February 1, 2024, and October 22, 2024, Alto promoted ALTO-100 as a precision psychiatry breakthrough, emphasizing its prior biomarker-linked success in treating major depressive disorder (MDD). The company’s IPO materials and investor communications positioned the drug as a lead asset with first-in-class potential and near-term commercialization viability.

In truth, ALTO-100 lacked sufficient statistical support in earlier studies and faced serious efficacy risks. On October 22, 2024, Alto disclosed that ALTO-100 had failed its Phase 2b trial, showing no significant difference from placebo on the primary endpoint. The next day, ANRO dropped 69.99%, wiping out most of the value created by its $119.6 million IPO just months earlier.

Based on these events, ANRO investors filed a claim against Alto, alleging the company:

• It misled investors about ALTO-100’s efficacy and biomarker strategy in its IPO and public statements.
• It concealed key clinical limitations and risks tied to its Phase 2b trial design and expectations.

It overstated its commercialization timeline and failed to warn of impending trial failure.

Investors believe Alto misrepresented its drug pipeline strength and rushed its IPO to capitalize on inflated expectations.