The lawsuit, filed by Hagens Berman Sobol Shapiro LLP, focuses on the period between the company’s February 2025 IPO and mid-May 2026. The complaint alleges that Aardvark failed to disclose significant safety concerns surrounding ARD-101, a small-molecule therapy intended to treat hyperphagia in Prader-Willi Syndrome. According to the filing, the company overstated the drug's prospects while concealing reversible cardiac observations, including QRS prolongation, detected during clinical trials.
Aardvark Therapeutics Investors Face October Deadline in Securities Suit
Investors who suffered losses in Aardvark Therapeutics following a series of clinical setbacks now have until October 13, 2026, to seek lead plaintiff status in a pending class action lawsuit. The litigation targets alleged misrepresentations regarding the safety and commercial viability of the company’s lead drug candidate, ARD-101.
Market confidence eroded in two major waves as safety issues surfaced. On February 27, 2026, the company voluntarily paused its Phase 3 HERO trial, triggering a stock price drop of more than 56%. The situation intensified on May 14, 2026, when the FDA imposed a full clinical hold on the company’s investigational new drug application, halting all studies and causing the stock to fall an additional 32.1%. Reed Kathrein, the Hagens Berman partner overseeing the investigation, stated that the firm is scrutinizing whether Aardvark misled stakeholders regarding the safety and efficacy of its core development pipeline.
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