Applied Therapeutics Invites Investors to Join Class Action Lawsuit for Significant Losses

Recent Class Action Opportunity for Investors in Applied Therapeutics, Inc.

In a significant development for investors in Applied Therapeutics, Inc. (NASDAQ: APLT), the law firm Robbins Geller Rudman & Dowd LLP has announced an opportunity for those who suffered considerable financial losses to lead a class action lawsuit against the company. This announcement comes in light of recent troubling news surrounding the biopharmaceutical firm, particularly concerning its failed New Drug Application (NDA) for a drug intended to treat Classic Galactosemia.

Background of the Case

The class action lawsuit, titled "Alexandru v. Applied Therapeutics, Inc.,” is rooted in accusations that the company and its high-ranking officials violated the Securities Exchange Act of 1934. According to court documents, individuals who purchased or acquired Applied Therapeutics securities from January 3, 2024, to December 2, 2024, are eligible to file their request for lead plaintiff designation by February 18, 2025.

The lawsuit follows a series of announcements made by Applied Therapeutics that have raised concerns among investors. On January 3, 2024, the company declared it had submitted an NDA to the U.S. Food and Drug Administration (FDA) for its new medication, govorestat. However, rather than positive news, the situation escalated when it was revealed that the FDA had rejected the NDA, citing multiple deficiencies in the clinical application, leading to a drastic drop of over 80% in the stock price shortly after the announcement.

Allegations Against Applied Therapeutics

The foundation of the class action claim centers on allegations that the executives of Applied Therapeutics misled investors regarding the company’s adherence to trial protocols and clinical standards. The lawsuit contends that these misleading statements created a significant risk that the submitted trial data would not be approved by the FDA.

On November 27, 2024, news broke that the FDA had issued a Complete Response Letter, indicating the application's inadequacies and implying that the company could not secure approval for the medication in its current form. Further compounding the fallout, on December 2, 2024, Applied Therapeutics disclosed that it received an FDA warning related to “issues involving electronic data capture” and a dosing discrepancy during the study, which caused another drop of over 26% in the stock price over merely three trading sessions.

The Process for Becoming a Lead Plaintiff

Investors wishing to take part in the class action must act promptly as the deadline for filing is fast approaching. Under the Private Securities Litigation Reform Act of 1995, any investor who bought or acquired Applied Therapeutics securities during the aforementioned class period can seek to be appointed as the lead plaintiff. The lead plaintiff plays an essential role, representing the interests of the entire class of aggrieved investors while also selecting legal counsel for the proceedings.

Being the lead plaintiff does not affect an individual’s entitlement to any potential settlement; investors who served as lead plaintiffs are not the only ones who will benefit from any future recovery.

About the Law Firm

Robbins Geller Rudman & Dowd LLP is a highly regarded law firm that specializes in representing investors in securities litigation, and it boasts a strong track record of securing substantial settlements for its clients. Over the last decade, the firm has ranked as the number one firm in securities class action services. With over $6.6 billion in recoveries in securities fraud cases, Robbins Geller's expertise may prove vital for investors seeking redress in this case against Applied Therapeutics.

For those who believe they may have been affected, more information and resources are available on their official website, where attorneys J.C. Sanchez and Jennifer N. Caringal can be reached directly for assistance.

This class action represents a vital chance for investors to hold Applied Therapeutics accountable and recover losses incurred due to alleged corporate mismanagement. Time is of the essence, and interested parties should act quickly to ensure their voices are heard in this significant legal pursuit.