Class Action Against Applied Therapeutics, Inc. with Deadline Approaching for Investors to Join

Recent Class Action Lawsuit Against Applied Therapeutics, Inc.

On February 11, 2025, Levi & Korsinsky, LLP announced a class action securities lawsuit against Applied Therapeutics, Inc. This legal action focuses on the alleged securities fraud impacting shareholders during a critical period from January 3, 2024, through December 2, 2024. Investors affected by this fraud are encouraged to seek recourse before the upcoming deadline on February 18, 2025.

Overview of the Lawsuit

The fundamental basis of the lawsuit revolves around significant drops in the stock prices of Applied Therapeutics, listed under NASDAQ as APLT. The suit aims to recover losses sustained by investors due to a series of adverse developments concerning the company’s lead drug candidate, govorestat. The timeline of events leading to the lawsuit is critical to understanding the context of these allegations.

Significantly, on November 27, 2024, Applied Therapeutics disclosed that they had received a Complete Response Letter (CRL) from the FDA regarding the New Drug Application (NDA) for govorestat. The necessity for a CRL arose due to the FDA's determination of existing deficiencies in the clinical application.

Following this announcement, Applied Therapeutics' common stock saw a shocking plunge from a closing price of $10.21 on November 26, 2024, to $8.57 on the day of the news. The decline continued precipitously thereafter, bottoming out at $1.75 per share by December 2, 2024, amounting to an over 80% decrease within a span of just days. This dramatic decline highlighted investors' concerns surrounding the company's prospects and transparency.

Aftermath of the Warning Letter

Adding to the tumult, on the evening of December 2, 2024, Applied Therapeutics revealed that it had also received a warning letter from the FDA, further complicating its clinical trial processes and underscoring significant errors that had occurred. In turn, this new information prompted yet another drop in stock value, as the gravity of the situation became clear to investors. The stock price reacted unfavorably, falling to $1.29 by December 5, 2024.

What This Means for Investors

For investors who may have experienced losses due to the events of late 2024, this class action lawsuit represents a potential avenue for recovery. The proposed class seeks to include every individual or entity that held shares of Applied Therapeutics during the specified time frame. Interested parties must act quickly; the deadline to join the class is set for February 18, 2025.

Levi & Korsinsky emphasizes that there is no upfront cost for those wishing to participate as class members. Successful recovery from the lawsuit is structured to not impose any out-of-pocket expenses on the investors involved.

This legal team has a proven track record, having recovered hundreds of millions of dollars for shareholders over the past two decades, further solidifying the value of their involvement in securities litigation.

Next Steps

If you believe that you qualify as a class member impacted by Applied Therapeutics' actions, it’s vital to reach out to Levi & Korsinsky as soon as possible. Contact can be made through phone or email for any parties wishing to learn more about their potential claims or the process of getting involved.

This class action lawsuit must not be overlooked, as it not only reflects the challenges faced by Applied Therapeutics, but also underscores wider issues of accountability and investor protection in the dynamic landscape of biotechnology.

Contact Information

For further details, investors can contact Joseph E. Levi, Esq. or Ed Korsinsky, Esq. directly at the firm via the provided telephone number or email. More information regarding the lawsuit and how to participate can be accessed on the firm’s website.