A securities class action names Unicycive Therapeutics' Chief Executive Officer and Chief Financial Officer as individual defendants under Section 20(a) control person claims, alleging they controlled disclosures telling shareholders a third-party manufacturer had made "significant progress" toward FDA compliance that the Company had never verified through its own inspection.
NEW YORK, Sept. 9, 2026 /PRNewswire/ -- Levi & Korsinsky, LLP notifies investors in Unicycive Therapeutics, Inc. (NASDAQ: UNCY) that a securities class action naming Chief Executive Officer Shalabh Gupta and Chief Financial Officer John Townsend as individual defendants has been filed on behalf of shareholders who purchased securities between December 29, 2025 and June 29, 2026. Find out if you may be eligible to recover losses. You may also contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com or (212) 363-7500.
UNCY closed at $7.70 on June 29, 2026. One session later, following the June 30, 2026 announcement of a second Complete Response Letter from the FDA, the stock closed at $4.69, a single-day decline of $3.01 per share, or 39.1%, on unusually heavy trading volume. The window to apply for lead plaintiff closes on November 2, 2026.
The Named Individual Defendants
Gupta served as Chief Executive Officer at all relevant times and Townsend served as Chief Financial Officer at all relevant times. The complaint charges that both officers, by virtue of their positions, possessed the power and authority to control the contents of Unicycive's SEC reports, press releases, and presentations to analysts and institutional investors, and that each received the challenged statements before or shortly after issuance with the ability to prevent or correct them.
Sarbanes-Oxley Certification Obligations
Officers who sign Section 302 and Section 906 certifications personally attest that a company's filings omit no material facts, which the pleading asserts makes the accuracy of Unicycive's FY2025 Form 10-K and Q1 2026 Form 10-Q descriptions of the vendor's compliance status a personal responsibility and not solely a corporate one.
Alleged Control Person Liability
- Authority over the December 29, 2025 press release announcing resubmission of the OLC New Drug Application based on the original vendor's claimed "significant progress" toward regaining FDA compliance
- Control over annual and quarterly filings describing the "single deficiency" at the third-party manufacturing vendor as the subject of resolved discussions
- Alleged access to material non-public information showing the Company had not inspected or audited the vendor's facility for cGMP compliance
- Alleged ability to prevent issuance of, or to correct, statements the action contends lacked a reasonable basis
- Section 20(a) exposure, which in practical terms means officers found to control a primary violator can be held liable for the same shareholder losses
"Officers who certify a company's filings take on personal responsibility for what those filings say and what they leave out. Here the complaint charges that Unicycive told the market its manufacturing vendor had made significant progress toward FDA compliance while the Company had never inspected the facility itself. Shareholders are entitled to test that allegation against the individuals who signed the disclosures." -- Joseph E. Levi, Esq.
Submit your information to learn more or call (212) 363-7500.
Levi & Korsinsky, LLP is a nationally recognized shareholder rights firm. Over the past 20 years, the firm has secured hundreds of millions of dollars for aggrieved shareholders. Ranked in ISS Top 50 for seven consecutive years.
Frequently Asked Questions About the UNCY Lawsuit
Q: Who are the defendants named in the UNCY lawsuit?A: The complaint names Unicycive Therapeutics, Inc. and individual defendants including senior executives who signed SEC filings, made public statements, or certified financial disclosures under Sarbanes-Oxley.
Q: What court was the UNCY class action filed in?A: The case was filed in the United States District Court for the Northern District of California, governed by the Private Securities Litigation Reform Act of 1995.
Q: What is the UNCY class action lawsuit about?A: A securities class action has been filed against Unicycive Therapeutics, Inc. (NASDAQ: UNCY) alleging materially false and misleading statements between December 29, 2025 and June 29, 2026. Shares fell approximately 39.1% after the Company disclosed that the FDA had issued a second Complete Response Letter based on the same third-party manufacturing deficiencies identified in the prior letter. Investors who purchased shares during the Class Period and suffered losses may be eligible to seek compensation.
Q: What is a lead plaintiff and why does it matter?A: A lead plaintiff is the investor appointed by the court to represent the entire class. Lead plaintiffs are typically investors with the largest documented losses. Being appointed does not increase individual recovery but gives direct oversight of how the case is run.
Q: What do UNCY investors need to do right now?A: Investors may gather brokerage records showing purchase dates, share quantities, and prices paid. Submit your information for a no-cost, no-obligation evaluation of your potential recovery. No immediate action is required to remain eligible as an absent class member.
Q: What if I already sold my UNCY shares -- can I still recover losses?A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought during the Class Period and sold at a loss may still be eligible to participate.
Q: Do I need to go to court or give testimony?A: No. The overwhelming majority of class members never appear in court or give depositions. If there is a settlement or recovery, eligible class members generally submit a claim form to seek their portion.
Q: What does it cost me to participate?A: There is no upfront cost to submit your information and review whether you may be eligible to recover. Should you choose to participate in the securities class action, they are generally handled on a contingency basis, with any attorneys' fees and expenses subject to court approval.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
jlevi@levikorsinsky.com
Tel: (212) 363-7500
Fax: (212) 363-7171
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SOURCE Levi & Korsinsky, LLP
