The investigation centers on a series of statements made by Phathom executives earlier this year. During the February 26 Q4 2025 earnings call, CEO Steve Basta touted a revenue guidance range of $320 million to $345 million, citing a GI-focused growth strategy. CFO Sanjeev Narula reiterated this projection during the April 30 Q1 2026 call, confirming the company’s confidence in the initial range while highlighting a commercial expansion involving more than 290 sales representatives.

Shortly after these assurances, the company revised its full-year 2026 revenue outlook downward to a range of $300 million to $325 million. This adjustment triggered a decline in share price, prompting the current legal review. Levi & Korsinsky is now evaluating whether the previous guidance was based on materially false or misleading information. Investors who purchased PHAT shares during the period before the downward revision are being urged to submit documentation of their losses for a formal evaluation.