MoonLake Immunotherapeutics' (MLTX) Stock Crashes 90%, Triggers Lawsuit After Reported Phase 3 Trial Data for Sole Drug Candidate -- Hagens Berman

Core Viewpoint - MoonLake Immunotherapeutics has faced a significant decline in share price, dropping nearly 90% in one day 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 SLK, which is intended to treat 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 lawsuit claims that MoonLake exaggerated SLK's benefits over competitors, particularly in relation to its unique "Nanobody" structure, which was presented as a major competitive advantage [4][6]. Trial Results - The VELA Phase 3 trials, particularly VELA-2, did not meet their primary endpoint, leading to a significant drop in stock price from $61.99 to $6.24, a decrease of $55.75 per share [5]. - Analysts noted that the efficacy results from the successful trial were substantially lower than those achieved by the competitor drug BIMZELX, which shares the same molecular targets [4][6]. Investor Impact - The decline in stock price has prompted Hagens Berman, a plaintiffs' rights firm, to investigate claims of misleading information that may have artificially inflated the stock price during the class period from March 10, 2024, to September 29, 2025 [2][6].