LEVI & KORSINSKY, LLP: MREO Stock Loss Quantifies Investor Damages Following Phase 3 Trial Disclosure
Critical Information: $2.02 Per Share Loss Quantifies Alleged Investor Damages
NEW YORK, Feb. 19, 2026 (GLOBE NEWSWIRE) -- From a closing price of $2.31 on December 26, 2025, Mereo BioPharma Group plc (NASDAQ: MREO) shares declined to $0.29 on December 29, 2025 following corrective disclosures concerning the Phase 3 ORBIT and COSMIC clinical trials. The lawsuit maintains that this decline reflects the market's removal of artificial inflation previously embedded in MREO's share price due to undisclosed clinical trial challenges. This $2.02 per share loss allegedly quantifies the economic harm suffered by Class Period purchasers who relied on the integrity of the market price. The last day to move for lead plaintiff is April 6, 2026.
The December 29, 2025 Disclosure
Plaintiffs assert that on December 29, 2025, Mereo disclosed that neither the ORBIT nor COSMIC Phase 3 studies achieved statistical significance for their primary endpoints of reduced annualized clinical fracture rate. The lawsuit maintains this disclosure revealed the truth concealed during the Class Period.
Alleged Investor Damages and Loss Causation
• Closing price on December 26, 2025: $2.31 per ADS
• Closing price on December 29, 2025: $0.29 per ADS
• Alleged decline: 87.7% (approximately $2.02 per share)
• Prior decline on July 10, 2025: 42.52% following interim analysis disclosure
• Plaintiffs allege these declines represent removal of artificial inflation caused by alleged misstatements
What the Disclosure Revealed
Plaintiffs assert the December 29 disclosure revealed that: (1) neither Phase 3 trial met its primary endpoint; (2) BMD improvements did not translate to fracture reduction; and (3) management's repeated expressions of confidence were allegedly unfounded. The lawsuit maintains these revelations caused the market to revalue MREO downward.
The Alleged Setrusumab Revelation
As stated in the filing, CEO Denise Scots-Knight acknowledged: "Whilst we are disappointed by these results, we will be conducting additional analyses on the data, to assess next steps and the best path forward for the program." Plaintiffs assert this statement contrasts sharply with prior confident assertions about the program's prospects.
"When companies fail to disclose material information, shareholders may suffer significant losses," noted Joseph E. Levi, Esq. "We are committed to representing investors who believe they were harmed."
ABOUT LEVI & KORSINSKY, LLP
Levi & Korsinsky, LLP is a nationally recognized firm specializing in securities class actions and shareholder rights litigation. Ranked among ISS Securities Class Action Services' Top 50 for seven consecutive years, the firm has recovered hundreds of millions of dollars for investors across the country.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
(212) 363-7500
jlevi@levikorsinsky.com
www.zlk.com
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
