#United States #New York #Class Action #Securities Fraud #Applied Therapeutics

Recent Developments in Applied Therapeutics, Inc. Securities Class Action

Applied Therapeutics, Inc., known for its focus on innovative treatments, is currently embroiled in a class action lawsuit regarding significant securities law violations. This legal proceeding, underscored by growing investor concerns, seeks to address potential wrongdoings that adversely affected shareholders. Investors are encouraged to familiarize themselves with the details surrounding this case, especially if they have incurred financial losses while holding Applied Therapeutics shares between January 3, 2024, and December 2, 2024.

Background of the Case

On December 27, 2024, Levi & Korsinsky, LLP publicized that they are officially notifying investors regarding this class action lawsuit, highlighting the company’s challenges related to its lead drug candidate, govorestat. Most notably, the troubles began on November 27, 2024, when Applied Therapeutics reported receiving a Complete Response Letter (CRL) from the FDA concerning its New Drug Application. This unfortunate development indicated that the FDA identified multiple deficiencies related to the clinical application of govorestat, which immediately sparked concerns among investors.

Following the announcement, Applied Therapeutics' stock witnessed a shocking plunge. The stock price fell from $10.21 on November 26 to a mere $8.57 just a day later. The fall continued as investors reacted negatively to the unfolding situation, causing the stock price to plummet further to $2.03 by November 29 and hitting an alarming $1.75 by December 2, 2024, marking a staggering decrease of over 80% within just a matter of days.

In a further exacerbation of the situation, the company issued a warning letter from the FDA relating to issues in the clinical trial that underpinned the CRL. This news catalyzed additional drops in the stock price, with shares falling to $1.29 by December 5, reinforcing the gravity of the situation faced by shareholders.

Implications for Investors

For those investors who suffered losses during this turbulent period, it is crucial to understand the implications of this class action lawsuit. Levi & Korsinsky emphasizes that those affected can request the Court appoint them as lead plaintiff, allowing them to take an active role in the legal proceedings, although participation in any potential recovery from the lawsuit does not necessitate acting as a lead plaintiff. The deadline for such requests is set for February 18, 2025.

One key aspect to note for involved investors is the assurance of zero out-of-pocket fees. Class members can potentially receive compensation without any upfront costs or financial obligations.

Why Choose Levi & Korsinsky

Levi & Korsinsky has a long-standing reputation in securities litigation, having successfully represented numerous clients over the last two decades. With a skilled team dedicated to fighting for investors' rights, the firm has earned a place among the top securities litigation entities in the United States, as recognized by ISS Securities Class Action Services.

Conclusion

As the situation unfolds, it remains vital for investors in Applied Therapeutics to stay informed about the developments of this lawsuit. Those affected by the stock's fall should reach out to Levi & Korsinsky for further assistance and potential next steps. This class action not only highlights the importance of investor rights but also serves as a critical reminder of the need for transparency in the corporate world.

For more information, investors may reach out directly to the firm via the provided contact details. As the landscape of this case continues to evolve, proactive measures taken now could significantly influence the outcomes for shareholders in these challenging times.