#USA #San Francisco #class action lawsuit #Aardvark Therapeutics #AARD stock

Aardvark Therapeutics Faces Legal Actions After IPO

Aardvark Therapeutics, Inc. (NASDAQ: AARD), a clinical-stage biopharmaceutical company, is currently under scrutiny for alleged misleading statements made during its initial public offering (IPO) in February 2025. Hagens Berman Sobol Shapiro LLP, a nationwide law firm dedicated to shareholder rights, has announced a pending class action lawsuit that concerns investors who acquired Aardvark shares during the specified period from the IPO until May 14, 2026.

Details of the Allegations

The lawsuit primarily accuses Aardvark of providing materially false and misleading information related to its lead drug candidate, ARD-101. This therapy is designed to treat hyperphagia in patients suffering from Prader-Willi Syndrome (PWS). The legal documents filed by Hagens Berman highlight significant concerns about the safety and efficacy of ARD-101 that the company allegedly failed to disclose adequately.

According to the complaint, Aardvark had misrepresented ARD-101's safety profile, leading investors to believe that it was significantly safer than it actually was. It mentions the following critical points:

• - Safety Concerns: During clinical trials, unexpected serious cardiac side effects were observed, ultimately leading to a pause in the Phase 3 HERO trial due to safety monitoring findings.
• - Regulatory Challenges: On May 14, 2026, the FDA placed a full clinical hold on Aardvark’s investigational new drug application for ARD-101, halting all ongoing studies, which had a dire impact on the company’s stock price.
• - Stock Price Collapse: There are claims that after the alarming announcements regarding the drug's safety, Aardvark’s stock price fell dramatically by more than 56% and experienced further declines after the clinical hold was enforced.

What the Lawsuit Seeks

The class action aims to provide a legal recourse for shareholders who incurred losses as a result of the alleged deceptive practices employed by Aardvark Therapeutics during the offering. The law firm is encouraging affected investors to reach out to discuss their options, emphasizing the importance of participating before the lead plaintiff motion deadline of October 13, 2026.

Ongoing Investigations and Next Steps

Reed Kathrein, the partner leading the investigation at Hagens Berman, remarked on the seriousness of the claims. He stressed that the firm is actively examining whether Aardvark misled its investors regarding the drug's development process and its subsequent safety information.

Investors who suffered losses during the designated time frame are called upon to submit their information to the firm to potentially join the case as plaintiffs. The law firm is also open to whistleblowers who may have nonpublic information regarding Aardvark, with incentives under the SEC Whistleblower program.

About Hagens Berman

Hagens Berman is a law firm recognized for its work in complex litigation involving corporate accountability. It has helped secure over $2.9 billion for clients wronged by corporate malfeasance and focuses primarily on protecting investor rights. The dedication to represent those harmed by corporate negligence reaffirms its commitment to justice and accountability in the financial markets.

In conclusion, the unfolding legal proceedings against Aardvark Therapeutics represent a critical chapter for investors and shareholders seeking recourse. It underscores the need for transparency and accountability in corporate communications, particularly when it concerns the health and safety of patients.