Investors Alerted: Class Action Lawsuit Filed Against Applied Therapeutics Over Alleged Securities Fraud

Pomerantz Law Firm Takes Action Against Applied Therapeutics

A recent announcement from Pomerantz LLP has sent ripples through the investment community: a class action lawsuit has been filed against Applied Therapeutics, Inc. (NASDAQ: APLT). This legal action arises amid allegations of securities fraud, drawing attention to the company's actions and decisions that impacted its stock value.

The firm is urging shareholders who have incurred losses due to their investment in Applied Therapeutics to step forward. Affected investors are invited to contact attorney Danielle Peyton for further information. Inquiries can be directed via email at [email protected] or by phone, allowing the firm to gather necessary details to represent them effectively. Those interested in joining the class action have until February 18, 2025, to act.

Background on the Case

The core of this lawsuit revolves around two significant announcements the company made at the close of 2024, which led to a substantial decline in stock price. On November 27, 2024, Applied Therapeutics announced that the U.S. Food and Drug Administration (FDA) had issued a Complete Response Letter (CRL) for its New Drug Application (NDA) concerning govorestat, a medication designed to treat Classic Galactosemia. The FDA cited deficiencies in the application, ultimately causing the company’s stock to plummet by 16.06% on the news, closing at $8.57 per share.

Just days later, on December 2, 2024, the situation worsened when the company revealed they had received a warning letter from the FDA addressing issues linked to clinical trials leading to the issuance of the CRL. Further compounding matters, the letter pointed to problems with electronic data capture and a dosing error during the trial, which led to another decline in stock price, this time closing at $1.29 per share just three days after the warning.

Investors Rights and the Role of Pomerantz LLP

Pomerantz LLP has an esteemed reputation, known for its work in corporate, securities, and antitrust class litigation, often recovering billions of dollars in damages for those adversely affected by corporate misdeeds. This lawsuit reflects the firm’s commitment to ensuring that shareholders are given a voice in the financial landscape, particularly when it comes to holding companies accountable for misleading practices.

The question now lies with the shareholders: Are you among those who have been affected by these events? If you have purchased or acquired Applied Therapeutics securities during the class period, it is crucial to evaluate your options moving forward. The legal window for action is narrowing, and those wishing to serve as Lead Plaintiff need to take proactive steps before the February deadline.

Applied Therapeutics continues to navigate a turbulent period, and the outcomes of this lawsuit could significantly influence its future operations and investor relations. Shareholders are advised to stay informed about developments in this ongoing case and consider their rights in the face of these allegations.

For more updates on this class action lawsuit against Applied Therapeutics, follow ongoing releases from Pomerantz LLP. They are dedicated to protecting investors and ensuring corporate accountability. For inquiries about this and other class action notices, you may visit their official website at pomerantzlaw.com.