ARS Pharmaceuticals faces securities class action over neffy insurance coverage timeline

ARS Pharmaceuticals, Inc. (Nasdaq: SPRY) disclosed in its 10-Q filed August 13, 2026 that a purported stockholder filed a securities class action complaint on August 5, 2026 in the U.S. District Court for the Southern District of California. The defendants are the company and "certain of its current and former officers." The 10-Q does not name the stockholder or the officers, and it gives no case number.

The complaint alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5. The company says it intends to defend against the claims vigorously.

The case

The complaint alleges that defendants made material misstatements or omissions about the company's expected timeline for expanded insurance coverage for neffy, its epinephrine nasal spray. On behalf of the putative class it seeks unspecified damages, pre- and post-judgment interest, attorneys' fees, expert fees and costs, class certification and other relief. The 10-Q does not give a class period.

The 10-Q's list of forward-looking statements includes the likelihood of neffy attaining and maintaining favorable coverage, and the company's expectation that additional states will place neffy on their preferred drug lists. The complaint concerns the timeline for expanded coverage. The company says its chances of success on the merits of these suits are still uncertain.

A second putative class action was filed a month earlier. On July 10, 2026, Jonico, Inc. d/b/a Berlin Pharmacy sued the company and ARS Pharmaceuticals Operations, Inc. in the Western District of Pennsylvania (Civil Action No. 3:26-cv-01339). It alleges that the company sent, or caused to be sent, fax advertisements for neffy to pharmacies without prior permission and without opt-out notices, in violation of the Telephone Consumer Protection Act. The statute provides statutory damages of $500 per violation, which may be trebled up to $1,500 for willful or knowing violations. The complaint also seeks an injunction. The company disputes the allegations.

Defendants

In the securities case the named defendant is ARS Pharmaceuticals, Inc., together with unnamed current and former officers. The 10-Q does not list the individuals, so no filing we reviewed says who they are. For reference, the 10-K filed March 9, 2026 was signed by Richard Lowenthal as president and chief executive officer and by Kathleen D. Scott as chief financial officer. An 8-K filed July 7, 2026 says the board appointed Donn Casale as chief executive officer, replacing Mr. Lowenthal. None of the filings says whether any of these three is a defendant.

In the fax case the defendants are ARS Pharmaceuticals, Inc. and ARS Pharmaceuticals Operations, Inc.

Where it stands

Both cases are new. The 10-Q reports no lead plaintiff appointment, motion to dismiss or schedule in either one. For the securities action it says: "Any potential loss arising from this claim is not currently probable or estimable."

Related matters

The same note describes the Aptar trade secret litigation, an opposition at the European Patent Office to a neffy formulation patent, and patent suits against Lupin and Cipla over proposed generic versions of neffy.

Why it matters to shareholders

The company says involvement in legal proceedings may hurt it through defense and settlement costs and diversion of management resources. It also says it cannot predict the outcome of these suits and that an unfavorable result could have a material adverse effect on its business, results of operations and financial condition. Because it cannot reasonably estimate any possible loss or range of loss, it recorded no liability as of June 30, 2026. The 10-Q does not say whether insurance would cover either class action.

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