Investors Sue ANRO After Test Drug Failure

Alto Neurosciences hyped up the promise of its new depression treatment. But in the end, all that was left were broken promises and empty wallets. When investors learned Alto's new drug failed its clinical trials, despite months of executive spin, investors gave Alto a failing grade and dumped their shares. The stock lost an eye-popping 70% in a day. Now, investors are suing.

ALTO-100 was hyped as a novel treatment for clinical depression. In February 2024, Alto Neurosciences released its IPO paperwork. The IPO hyped-up the drug's effectiveness and likelihood for getting the FDA's okay. For months, Alto execs kept touting the drug's effectiveness and even said they had more trials in the pipeline.

But the spin spun out In October 2024. Alto announced ALTO-100 failed its clinical trial and did no better than placebo. Investors tossed out their shares like a box of broken test tubes and Alto's stock went into freefall.

Now, more investors are joining the lawsuit.