#United States #New York #investigation #Faruqi & Faruqi #Applied Therapeutics

Ongoing Investigation of Applied Therapeutics

Faruqi & Faruqi, LLP, a prominent national securities law firm, is currently conducting an investigation into applied Therapeutics, Inc. This inquiry responds to concerns from investors who acquired shares between January 3, 2024, and December 2, 2024. The firm is encouraging affected investors to reach out directly to discuss their rights and potential claims regarding their investments.

The investigation arises from a recent class action lawsuit that has been filed against Applied Therapeutics, highlighting serious allegations. The claims assert that the company, along with its executives, potentially breached federal securities laws by disseminating false or misleading information while masking crucial adverse facts regarding the company's clinical trials. This lack of transparency regarding the Phase III INSPIRE trial—specifically, issues with electronic data capture and a significant dosing error—raises serious concerns about the integrity of the company's disclosures to investors.

On November 27, 2024, the fallout from these issues became quite evident when Applied Therapeutics announced that the U.S. FDA had issued a Complete Response Letter (CRL) regarding their New Drug Application (NDA) for govorestat. This decision was made due to noted deficiencies in the clinical data submitted, causing the stock to plummet 16.06% in a single day. Following up, the FDA then also posted a Warning Letter indicating that significant issues had been identified as early as May 2024, further damaging investor confidence as the stock price fell another 18.34% shortly thereafter.

The law firm emphasizes that the role of lead plaintiff in this case will be pivotal. The lead plaintiff will represent the interests of all affected investors while overseeing the litigation process. Individuals who wish to take on this role can motion the court through their counsel or simply remain as class members with their rights to any potential recovery unaffected by their decision to serve or not serve as lead plaintiff.

In addition, Faruqi & Faruqi are actively seeking additional information regarding the conduct of Applied Therapeutics. They encourage former employees, whistleblowers, and any involved shareholders to come forward to assist in shedding light on this case.

The deadline for seeking lead plaintiff status is February 18, 2025, and interested investors are advised to act swiftly to protect their investments. For more information on the situation or to discuss legal options, investors may contact Faruqi & Faruqi partners directly or explore additional resources provided by the firm through their website.

The history of Faruqi & Faruqi, established in 1995, indicates a strong track record in recovering significant sums for investors impacted by corporate malfeasance, furthering their commitment to holding companies accountable for misrepresentation and misleading practices. The ongoing investigation into Applied Therapeutics stands as a reminder for investors to remain vigilant and proactive in safeguarding their interests in the competitive and sometimes volatile biotech investment landscape.