MoonLake Immunotherapeutics Faces Securities Fraud Allegations After Stock Crash
New York, Monday, 20 October 2025.
MoonLake Immunotherapeutics is under investigation for securities fraud following a 90% stock drop after disappointing trial results, with a class action lawsuit deadline on December 15, 2025.
Background of the Allegations
MoonLake Immunotherapeutics, a clinical-stage biotechnology company listed on NASDAQ under the ticker MLTX, is facing serious allegations of securities fraud. The company’s stock experienced a dramatic plummet of 90% following the disclosure of unsatisfactory results from its Phase 3 VELA trials. These trials were crucial for assessing the efficacy of sonelokimab, a drug intended to treat moderate to severe hidradenitis suppurativa [1][2].
The Result of Disappointing Trials
The disappointing results of the VELA trials, reported on September 28, 2025, indicated that the trials failed to meet their primary endpoints, which significantly hindered the drug’s chances for regulatory approval and commercial viability. This announcement triggered a substantial decrease in the company’s stock price from $61.99 to $6.24 per share, marking a nearly 90% drop in value [1][3].
Legal Proceedings and Class Action
In response to the stock collapse, a class action lawsuit has been filed against MoonLake Immunotherapeutics and certain senior executives. The lawsuit alleges violations of the Securities Exchange Act of 1934, specifically under Sections 10(b) and 20(a). This legal action represents investors who purchased MoonLake common stock and seeks to address claims of misleading statements regarding the drug’s efficacy [1][4].
Investor Actions and Deadlines
Investors affected by the stock decline are being encouraged to contact BFA Law and participate in the class action lawsuit. The deadline for investors to express their interest in leading the case is set for December 15, 2025. Multiple law firms, including Bleichmar Fonti & Auld LLP and Bronstein, Gewirtz & Grossman, LLC, are actively investigating claims and seeking to represent aggrieved shareholders [1][5].