Pomerantz Law Firm Issues Warning on Class Action Against Applied Therapeutics Amid Securities Fraud Claims

Investor Alert: Class Action Against Applied Therapeutics, Inc.

In a significant legal development, Pomerantz LLP has announced the initiation of a class action lawsuit against Applied Therapeutics, Inc., a company listed on NASDAQ under the ticker symbol APLT. This alert serves to inform investors who have sustained losses due to their investments in Applied Therapeutics of critical upcoming deadlines and details surrounding the allegations of securities fraud.

Background of the Lawsuit

The class action lawsuit centers on whether Applied Therapeutics and its management have engaged in unlawful business practices pertaining to securities fraud. As part of this lawsuit, investors are encouraged to contact Danielle Peyton at Pomerantz LLP for further information. She can be reached via email at [email protected] or by phone at 646-581-9980. Investors interested in potentially becoming the Lead Plaintiff in this case must act swiftly, as they have until February 18, 2025, to file their request with the court.

Recent Developments Impacting the Company

A major turning point for Applied Therapeutics came on November 27, 2024, when the company posted a press release regarding the U.S. Food and Drug Administration’s (FDA) decision. The FDA issued a Complete Response Letter (CRL) regarding the New Drug Application (NDA) for govorestat, a treatment aimed at Classic Galactosemia. The letter indicated that the FDA had completed its review and highlighted significant deficiencies in the clinical application that precluded approval in its current form.

This announcement led to a sharp decrease in the company’s stock price, which fell by $1.64 or 16.06%, resulting in a closing price of $8.57 per share on the same day. Such a drastic decline raised concerns among investors and ignited discussions of potential fraud and misconduct at the company.

On December 2, 2024, the situation deteriorated further when Applied Therapeutics confirmed that it received a warning letter from the FDA, which echoed issues related to the clinical trials that contributed to the CRL. Among the highlighted concerns were issues with electronic data capture, which the company insisted had been previously resolved through detailed documentation submitted to the agency. Other issues noted included a dosing error that occurred in the early phases of the trial, which, according to the company, had already been rectified. However, the implications of these findings were considerable, resulting in yet another decline in share prices by $0.46 or 26.29%, which closed at only $1.29 per share on December 5, 2024.

About Pomerantz LLP

Pomerantz LLP is a prominent law firm recognized for its extensive experience in class action litigation, focusing particularly on corporate, securities, and antitrust issues. The firm has been at the forefront of securities class actions for over 85 years, recovering billions of dollars for victims of corporate wrongdoing.

With offices located in several major cities across the globe, including New York and London, Pomerantz LLP has built a reputation for its commitment to fighting for investors' rights, especially in cases of fraud, misrepresentation, and breaches of fiduciary duty.

For those affected by their investment in Applied Therapeutics, now is the time to act. Investors seeking to join the lawsuit should reach out to Pomerantz LLP to ensure their rights and interests are protected as this situation unfolds, and to gain insight into how they can potentially join or contribute to the class action. More information, including a copy of the complaint, can be accessed through their official website at www.pomerantzlaw.com.

Note: This article serves as informational content and should not be construed as legal advice. Past recoveries do not predict future outcomes in similar cases.