The legal action, docketed as 26-cv-04643, covers investors who purchased Aardvark common stock between February 13, 2025, and May 14, 2026. Plaintiffs contend that the company’s offering documents contained material misstatements regarding the drug’s safety profile, ultimately causing significant financial losses when the reality of the clinical trials surfaced. Aardvark, which focuses on treatments for Prader-Willi Syndrome, saw its stock price plummet following a series of negative regulatory updates.
Aardvark Therapeutics Faces Class Action Lawsuit Over IPO Disclosures
Investors have launched a class action lawsuit against Aardvark Therapeutics, alleging the biopharmaceutical company misled shareholders about the safety and commercial viability of its lead drug candidate, ARD-101. The complaint, filed in the Southern District of California, targets disclosures made during the company’s February 2025 initial public offering.
The company’s credibility suffered a major blow on February 27, 2026, when it announced a voluntary pause of its Phase 3 HERO clinical trial. Aardvark cited "reversible cardiac observations" discovered during safety monitoring. The situation escalated on May 14, 2026, when the U.S. Food and Drug Administration imposed a full clinical hold on the company's investigational new drug application. Following these disclosures, the stock price dropped sharply—falling 56.2% in late February and an additional 32.1% in mid-May. Investors seeking to serve as lead plaintiff in the case have until October 13, 2026, to petition the court.
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