Pomerantz LLP and the Law Offices of Frank R. Cruz announced that investors in Fractyl Health, Inc. securities may seek appointment as lead plaintiff in a securities class action filed in the United States District Court for the Southern District of New York. Docketed as 26-cv-07167, the case covers investors who purchased or otherwise acquired Fractyl securities from January 13, 2025, through January 29, 2026, inclusive, and alleges materially false or misleading statements and omissions concerning the company’s Revita metabolic therapy, its clinical, regulatory and commercial prospects, and operational problems at one or more REMAIN-1 Midpoint Cohort sites. On January 29, 2026, Fractyl reported six-month midpoint-cohort data showing 4.5% weight regain among Revita-treated patients versus 7.5% in the sham arm, while saying the cohort was not sufficiently powered for efficacy analysis. CEO Harith Rajagopalan said one site recorded higher-than-expected regain across both arms. Fractyl shares fell 68.03% to $0.585 that day and another 21.37% to $0.46 on January 30 after Canaccord Genuity and Morgan Stanley reports. Morgan Stanley downgraded the stock to Equal-weight, cut its price target to $2 from $8, reduced its estimated probability of Revita success to 35% from 50%, and lowered projected peak risk-adjusted worldwide sales in 2035 to about $490 million from $700 million. Investors do not need to act to remain absent class members and may retain counsel or take no action.