The legal scrutiny follows an October 1 announcement that Foghorn and partner Eli Lilly would discontinue the Phase 1 trial for the Selective SMARCA2 degrader program. CEO Adrian Gottshalk confirmed the company is cutting its workforce by approximately 40% to preserve capital, a pivot that sent share prices tumbling from $2.92 to $2.02 by the close of trading on October 2, 2026.

Pomerantz LLP is now examining whether these disclosures mask deeper issues of securities fraud or breaches of fiduciary duty. The firm is soliciting contact from affected investors to determine if grounds exist for a class action lawsuit. Investors holding FHTX stock during this period are encouraged to reach out to Danielle Peyton to discuss their legal standing regarding these losses.