What's Happening?
Faruqi & Faruqi, LLP, a national securities law firm, is reminding investors of Ultragenyx Pharmaceutical Inc. about the April 6, 2026 deadline to seek the role of lead plaintiff in a federal securities class action. The lawsuit alleges that Ultragenyx and its executives violated federal securities laws by making false or misleading statements regarding the effects of setrusumab on patients with Osteogenesis Imperfecta. The complaint claims that the company created a false impression of having reliable information and minimized the risk of failure in their Phase III Orbit study. On July 9, 2025, Ultragenyx announced that the study failed to achieve statistical significance, leading to a 25% drop in stock price. Further, on December 29, 2025, the company revealed
that both its Phase III Orbit and Cosmic studies did not meet primary endpoints, resulting in a 42% stock price decline.
Why It's Important?
This class action lawsuit is significant as it highlights the potential financial and reputational risks companies face when accused of misleading investors. For Ultragenyx, the allegations could lead to substantial financial liabilities if the court rules in favor of the plaintiffs. The case underscores the importance of transparency and accuracy in corporate communications, especially in the pharmaceutical industry where clinical trial results can significantly impact stock prices. Investors who suffered losses may have an opportunity to recover damages, while the outcome of this case could influence how companies disclose information about clinical trials in the future.
What's Next?
Investors interested in becoming the lead plaintiff must file by the April 6, 2026 deadline. The court will appoint the lead plaintiff, who will represent the class in the litigation. The outcome of this case could lead to a settlement or a court ruling, potentially resulting in financial compensation for affected investors. Additionally, the case may prompt Ultragenyx and other pharmaceutical companies to reassess their disclosure practices to avoid similar legal challenges.
