Major Securities Law Suit Filed Against Applied Therapeutics: What Investors Need to Know

Overview of the Legal Issue

Applied Therapeutics, Inc., trading under NASDAQ as APLT, has recently become the subject of a legal action over alleged violations of securities laws. This notice is primarily aimed at informing shareholders who purchased their shares during the designated class period running from January 3, 2024, to December 2, 2024, about the ongoing situation and the firm's readiness to assist them.

Background of Allegations

On November 27, 2024, Applied Therapeutics issued a press release that dampened investor sentiment. The company announced it had received a Complete Response Letter (CRL) from the FDA regarding its New Drug Application for govorestat, which is classified as the company’s lead drug candidate. The CRL indicated that the FDA found deficiencies within the clinical application that prevented the approval of the NDA in its current form.

Following this unfortunate announcement, APLT's stock price began a steep decline. The stock plummeted from a closing market price of $10.21 on November 26, 2024, to $8.57 by the next day. This downward trajectory would only worsen over the following weeks, with shares reaching a shocking $1.75 by December 2, 2024, marking a tremendous total decline of over 80%.

Compounding the situation, after the market closed on December 2, the company revealed that it had received a