- Fractyl Health (NASDAQ:GUTS) executed a 12-for-1 reverse stock split on October 5, 2026, to consolidate shares.
- This reverse stock split followed a significant 74.86% decline in Fractyl Health’s stock price over two trading days.
- The company is currently facing a federal securities class action lawsuit alleging overstatements regarding its Revita DMR treatment efficacy.
Fractyl Health (NASDAQ:GUTS), a company developing the Revita DMR treatment, underwent a 12-for-1 reverse stock split on October 5, 2026. The split combines every 12 shares into one share. It reduces the number of shares outstanding but does not, by itself, change an investor’s total stake in the company.
The split follows a steep drop in Fractyl Health shares. The stock fell from $1.83 on January 28, 2026, to $0.46 on January 30, 2026, a decline of $1.37, or about 74.86%, over two trading days. Those prices come from before the reverse split and should not be compared directly with later prices without adjusting for it.
A federal securities class action alleges that Fractyl Health overstated how well Revita DMR works. The lawsuit also names co-founder and CEO Harith Rajagopalan and former CFO Lisa A. Davidson as alleged control persons. That term refers to people accused of having authority over the company’s actions. The claims remain allegations.
Investors who acquired Fractyl Health securities from January 13, 2025, through January 29, 2026, have until October 20, 2026, to ask to serve as lead plaintiff. The lead plaintiff represents other investors in the case. As highlighted by Faruqi & Faruqi, the deadline applies to investors seeking that role.
