Alto Neuroscience Inc. overhyped its antidepressant candidate surrounding its initial public offering before the biopharmaceutical company released disappointing trial results and had a 70% stock drop, a proposed class action said.
Alto’s IPO paperwork was negligently prepared, misleading investors about the effectiveness and prospects for a potential major depressive disorder drug, said the complaint filed in the US District Court for the Northern District of California. And Alto continued overstating ALTO-100’s abilities to treat MDD for almost another nine months, allegedly jacking up its stock price, said the suit filed Monday.
Then Alto said on Oct. 22, 2024, that ...
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