Mereo BioPharma(US:MREO) Prnewswire·2026-02-18 14:49Core Viewpoint - A class action lawsuit has been filed against Mereo BioPharma Group PLC, alleging that the company made misleading statements regarding its clinical trials for setrusumab, leading to significant financial losses for investors when the trials failed to meet their primary endpoints [1]. Company Overview - Mereo BioPharma Group PLC is a biopharmaceutical company based in London, UK, focused on developing therapies for rare and serious diseases [1]. Legal Proceedings - The class action lawsuit is on behalf of investors who purchased American Depositary Shares (ADS) from June 5, 2023, to December 26, 2025, with a deadline of April 6, 2026, for investors to seek lead plaintiff status [1]. - The lawsuit claims that Mereo issued overly positive statements about its ORBIT and COSMIC Phase 3 clinical trials for setrusumab, which ultimately did not achieve their primary endpoint of reducing the annualized clinical fracture rate [1]. Financial Impact - Following the disclosure on December 29, 2025, that the clinical trials did not meet their primary endpoints, Mereo's ADS price plummeted over 87%, from $2.31 per share on December 26, 2025, to $0.29 per share on December 29, 2025 [1].