Case Summary

Ventyx

NASDAQ: VTYX

Case Details

  • Yuksel v. Ventyx Biosciences, Inc. et al.
  • Class Period:October 18, 2021 - November 06, 2023
  • Date Filed:March 01, 2024
  • Jurisdiction:U.S. District Court, Southern District of California
  • Docket Number: 3:24-cv-00415
  • Lead Plaintiff Deadline: April 30, 2024
Days Left to
Seek Plaintiff
7

Overview

A class action lawsuit has been filed against Ventyx Biosciences, Inc. (“Ventyx” or the “Company”) (NASDAQ: VTYX) and certain of the Company’s current and former senior executive officers alleging violations of the Securities Exchange Act of 1934.  The Ventyx lawsuit is brought on behalf of all persons and entities who purchased or otherwise acquired: (a)Ventyx common stock pursuant and/or traceable to the Offering Documents issued in connection with the Company’s initial public offering (“IPO”) conducted on or about October 21, 2021; and/or (b) Ventyx securities between October 21, 2021 and November 6, 2023, both dates inclusive (the “Class Period”), and investors have until April 30, 2024 to seek appointment as lead plaintiff of Ventyx class action lawsuit.

Ventyx is a clinical-stage biopharmaceutical company that develops small-molecule product candidates to address a range of inflammatory diseases.  The Company’s lead clinical product candidate is VTX958, a selective allosteric tyrosine kinase type 2 inhibitor for psoriasis, psoriatic arthritis, and Crohn’s disease.  In 2022, Ventyx initiated a Phase 2 clinical trial of VTX958 for the treatment of moderate to severe plaque psoriasis (the “Phase 2 SERENITY Trial”).

On September 29, 2021, Ventyx filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission (“SEC”) in connection with its IPO, which, after several amendments, was declared effective by the SEC on October 20, 2021 (the “Registration Statement”).  On October 21, 2021, Ventyx filed a prospectus on Form 424B4 with the SEC in connection with the IPO, which incorporated and formed part of the Registration Statement (the “Prospectus” and, collectively with the Registration Statement, the “Offering Documents”).

The lawsuit alleges that the Offering Documents were negligently prepared and, as a result, contained untrue statements of material fact or omitted to state other facts necessary to make the statements made not misleading and were not prepared in accordance with the rules and regulations governing their preparation.  In addition, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and prospects.  Specifically, the Offering Documents and Defendants made false and/or misleading statements and/or failed to disclose that: (1) VTX958 was less effective in treating psoriasis than Defendants had led investors to believe; (2) as a result, VTX958’s clinical and/or commercial prospects were overstated; (3) accordingly, the Company had misrepresented its ability to develop and commercialize effective product candidates; (4) Ventyx’s post-IPO business prospects were thus inflated; and (5) as a result, the Company’s public statements were materially false and misleading at all relevant times.

On November 6, 2023, during after-market hours, Ventyx issued a press release announcing results from the Phase 2 SERENITY Trial.  Therein, the Company disclosed that although the trial achieved its primary endpoint, the magnitude of efficacy observed did not meet their internal target to support the advancement of VTX958 in plaque psoriasis.  Based on these results, the Company announced that it will terminate ongoing activities in the Phase 2 plaque psoriasis trial effective immediately and terminate the ongoing Phase 2 trial of VTX958 in psoriatic arthritis.  On this news, Ventyx’s common stock price fell $11.36 per share, or 80.62%, to close at $2.73 per share on November 7, 2023.  Then, on November 22, 2023, Ventyx disclosed in a filing with the SEC on Form 8-K that the Company’s President and Chief Medical Officer Defendant William J. Sandborn would cease to serve in those roles.  As of the time this lawsuit was filed, the price of Ventyx common stock continues to trade below the $16.00 per share Offering price, damaging investors.

*          *          *

If you purchased or otherwise acquired: (a)Ventyx (NASDAQ: VTYX) common stock pursuant and/or traceable to the Offering Documents issued in connection with the Company’s initial public offering conducted on or about October 21, 2021; and/or (b) Ventyx securities between October 21, 2021 and November 6, 2023, both dates inclusive, and suffered substantial losses, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at investors@dicellolevitt.com. 

The deadline to apply to the Court to serve as a lead plaintiff in the Ventyx lawsuit is April 30, 2024.

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