Alto Neuroscience, Inc.

Case Overview
49 Days Left to Seek Lead Plaintiff
Lead Plaintiff Deadline: | Lead Plaintiff Deadline: 09/19/2025 |
Status: | Status: Investigating |
Company Name: | Company Name: Alto Neuroscience, Inc. |
Court: | Court: Northern District of California |
Case Number: | Case Number: 3:25cv06105 |
Class Period: | Class Period: 01/31/2024 - 10/22/2024 |
Ticker: | Ticker: ANRO |
Related Attorneys: | Lead Attorneys: Thomas W. Elrod |
Related Practices: | Related Practices: Securities |
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Norhtern District of California on behalf of those who acquired Alto Neuroscience, Inc. (“Alto Neuroscience” or the “Company”) (NYSE:ANRO) securities during the period of January 31, 2024 and October 22, 2024, inclusive (“the Class Period”). Investors have until September 19, 2025 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Alto operates as a clinical-stage biopharmaceutical company in the United States. The Company's product pipeline includes, inter alia, ALTO-100, which at the time of the IPO was in a Phase 2b clinical trial for the treatment of patients with major depressive disorder ("MDD"). Also has touted ALTO-100 as "a novel small molecule that has shown evidence of a pro-neurogenesis/neuroplasticity mechanism of action" and has stated that the Company "believe[s] binds a receptor not targeted by other [central nervous system ("CNS")] therapeutics, which would make it first-in-class if approved."
On January 12, 2024, Alto filed a registration statement on Form S-1 with the United States Securities and Exchange Commission ("SEC") in connection with the IPO, which, after several amendments, was declared effective by the SEC on February 1, 2024 (the "Registration Statement"). On February 2, 2024, pursuant to the Registration Statement, Alto's common stock began publicly trading on the New York Stock Exchange under the ticker symbol "ANRO." On February 5, 2024, Alto 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"). Pursuant to the Offering Documents, Alto issued 8,040,000 shares of its common stock to the public at the Offering price of $16.00 per share for proceeds of $119,635,200 to the Company after applicable underwriting discounts and commissions, and before expenses. 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.
On October 22, 2024, Alto issued a press release announcing topline results from the Phase 2b trial evaluating ALTO-100 as a treatment for MDD. That press release stated, in relevant part, that "ALTO-100 in patients with [MDD] did not meet its primary endpoint, assessed by a change from baseline in Montgomery-sberg Depression Rating Scale (MADRS), compared to placebo." On this news, Alto's stock price fell $10.17 per share, or 69.99%, to close at $4.36 per share on October 23, 2024.
The lawsuit alleges that 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: (i) ALTO-100 was less effective in treating MDD than Defendants had led investors to believe; (ii) accordingly, ALTO-100's clinical, regulatory, and commercial prospects were overstated; and (iii) as a result, Alto's business and/or financial prospects were overstated.
Alto operates as a clinical-stage biopharmaceutical company in the United States. The Company's product pipeline includes, inter alia, ALTO-100, which at the time of the IPO was in a Phase 2b clinical trial for the treatment of patients with major depressive disorder ("MDD"). Also has touted ALTO-100 as "a novel small molecule that has shown evidence of a pro-neurogenesis/neuroplasticity mechanism of action" and has stated that the Company "believe[s] binds a receptor not targeted by other [central nervous system ("CNS")] therapeutics, which would make it first-in-class if approved."
On January 12, 2024, Alto filed a registration statement on Form S-1 with the United States Securities and Exchange Commission ("SEC") in connection with the IPO, which, after several amendments, was declared effective by the SEC on February 1, 2024 (the "Registration Statement"). On February 2, 2024, pursuant to the Registration Statement, Alto's common stock began publicly trading on the New York Stock Exchange under the ticker symbol "ANRO." On February 5, 2024, Alto 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"). Pursuant to the Offering Documents, Alto issued 8,040,000 shares of its common stock to the public at the Offering price of $16.00 per share for proceeds of $119,635,200 to the Company after applicable underwriting discounts and commissions, and before expenses. 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.
On October 22, 2024, Alto issued a press release announcing topline results from the Phase 2b trial evaluating ALTO-100 as a treatment for MDD. That press release stated, in relevant part, that "ALTO-100 in patients with [MDD] did not meet its primary endpoint, assessed by a change from baseline in Montgomery-sberg Depression Rating Scale (MADRS), compared to placebo." On this news, Alto's stock price fell $10.17 per share, or 69.99%, to close at $4.36 per share on October 23, 2024.
The lawsuit alleges that 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: (i) ALTO-100 was less effective in treating MDD than Defendants had led investors to believe; (ii) accordingly, ALTO-100's clinical, regulatory, and commercial prospects were overstated; and (iii) as a result, Alto's business and/or financial prospects were overstated.