MoonLake Immunotherapeutics' (MLTX) Reported Phase 3 Trial Data for Sole Drug Candidate, 90% Stock Crash Triggers Investor Suit -- Hagens Berman

Core Viewpoint - MoonLake Immunotherapeutics has faced a significant decline in share price, dropping nearly 90% due to disappointing Phase 3 trial results for its drug candidate sonelokimab (SLK) [1][5]. Company Overview - MoonLake Immunotherapeutics is a clinical-stage biotechnology company focused on developing sonelokimab (SLK) for treating moderate to severe hidradenitis suppurativa (HS), a chronic inflammatory skin disease [3]. Legal Issues - A securities fraud class action lawsuit has been filed against MoonLake in the U.S. District Court for the Southern District of New York, alleging that the company and certain executives made materially false and misleading statements regarding SLK's clinical prospects [2][4]. - The class period for the lawsuit is from March 10, 2024, to September 29, 2025, with a lead plaintiff deadline set for December 15, 2025 [2]. Trial Results and Market Reaction - The VELA Phase 3 trials for SLK reported disappointing results, with one trial failing to meet its primary endpoint and the efficacy results from the successful trial being significantly lower than those of the competitor drug BIMZELX [4][5]. - Following the announcement of the trial results, MoonLake's stock price fell from $61.99 to $6.24, a decrease of $55.75 per share, which analysts described as a "disastrous result" [5]. Allegations of Misleading Information - The lawsuit claims that MoonLake misled investors by exaggerating SLK's advantages over competitors, particularly its unique "Nanobody" structure, which was suggested to provide superior efficacy compared to traditional monoclonal antibodies [4][6]. - Plaintiffs argue that the company's promotion of SLK as a potential "gold standard" treatment was misleading and contributed to an artificial inflation of the stock price during the class period [6].