Fractyl Health, Inc. faces a securities class action in the United States District Court for the Southern District of New York on behalf of investors who purchased securities between January 13, 2025, and January 29, 2026. The complaint alleges that the company and two officers overstated the clinical, regulatory and commercial prospects of Revita DMR while failing to disclose operational problems at a REMAIN-1 Midpoint Cohort site. Fractyl reported six-month results on January 29 showing 4.5% weight regain for Revita-treated patients versus 7.5% for the sham arm, a roughly 40% relative difference that analysts described as below expectations. Morgan Stanley cut its rating to Equal-weight from Overweight, reduced its price target to $2 from $8 and lowered its estimated probability of Revita success to 35% from 50%. The source said GUTS fell 68.03% on January 29 and another 21.37% on January 30, closing at $0.46, compared with $1.83 on January 28, for a two-session decline of approximately 74.86%, or $1.37 per share. The source identifies October 20, 2026, as the deadline to seek lead-plaintiff appointment.