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Investigation of Aardvark Therapeutics Securities Class Action

Aardvark Therapeutics, a clinical-stage biopharmaceutical company known for its development of therapies targeting bitter taste receptors, is currently facing a securities class action lawsuit. Hagens Berman Sobol Shapiro LLP, recognized as a national leader in shareholder rights, has issued a notice urging investors affected by these developments to take action.

Background of the Lawsuit

The lawsuit is prompted by allegations that Aardvark Therapeutics misled investors regarding the safety and efficacy of its product ARD-101, which is aimed at treating hyperphagia associated with Prader-Willi Syndrome (PWS). During the company’s initial public offering (IPO) on February 13, 2025, crucial information was not disclosed that would have impacted investors’ awareness of potential risks related to the drug’s development.

Key points in the complaint include:
1. Misrepresentation of Safety: It is claimed that ARD-101 was found to be significantly less safe than what Aardvark had communicated to investors, specifically during clinical trials where reversible cardiac conditions were observed at higher doses.
2. Undisclosed Risks: The lawsuit identifies failures to disclose specific safety observations, including QRS prolongation, which emerged during routine safety monitoring in regular studies.
3. Material Overstatement: The expectations surrounding Aardvark’s clinical and commercial prospects—including the Phase 3 Hunger Elimination or Reduction Objective (HERO) trial—were allegedly overstated in the offering documents distributed to investors.

Timeline of Key Events

The mounting concerns came to a head on February 27, 2026, when Aardvark announced a voluntary pause in the Phase 3 HERO trial due to safety concerns arising from the aforementioned cardiac observations. Following this announcement, Aardvark's stock plummeted by over 56%, signaling widespread investor alarm.

On May 14, 2026, further bad news hit when the U.S. Food and Drug Administration (FDA) imposed a full clinical hold on Aardvark’s investigational new drug application for ARD-101, leading to an additional stock drop of 32.1% as the company halted all ongoing studies related to the drug.

How This Affects Investors

Current and past investors who acquired Aardvark securities between February 13, 2025, and May 14, 2026, are encouraged to seek counsel regarding their rights as part of this lawsuit. The key deadline for appointing a lead plaintiff is set for October 13, 2026. Engaging legal representation could provide avenues for recovery based on the losses incurred due to the alleged misrepresentation by the company.

Hagens Berman is actively investigating the details of this case. Reed Kathrein, the partner leading this investigation, emphasizes that the firm is committed to holding the company accountable for purported misguiding claims about the drug's approval process.

What Should Affected Investors Do?

Investors affected by the downturn in Aardvark's stock price due to the recent revelations should act swiftly to secure their potential recovery opportunities. Those who suffered losses are encouraged to contact Hagens Berman to evaluate their legal options and the possibility of becoming a part of the class action.

Additionally, whistleblowers and individuals with non-public information regarding Aardvark Therapeutics may also consider reporting their findings. The SEC Whistleblower program offers financial incentives to those who provide original and substantial information leading to enforcement actions by the Commission.

For more details on the ongoing investigation and to initiate contact, affected investors can reach Hagens Berman directly using the information provided in the original announcement.

About Hagens Berman

Hagens Berman is a global law firm specializing in complex litigation with a focus on corporate accountability. The firm has a strong track record of securing beneficial outcomes for those who have been harmed by corporate misconduct, having recovered over $2.9 billion across various sectors. Their commitment to protecting the rights of shareholders and consumers remains a central tenet of their practice.

For further updates on this situation and more information regarding the ongoing case against Aardvark Therapeutics, follow Hagens Berman on their official platforms.