Legal Action Looms for Applied Therapeutics Over Securities Violations - Know Your Rights

Legal Trouble for Applied Therapeutics, Inc.

Overview

On January 6, 2025, The Gross Law Firm issued a notice to the shareholders of Applied Therapeutics, Inc., recently embroiled in legal issues arising from alleged securities law violations. Shareholders who acquired stock during the specified period from January 3, 2024, to December 2, 2024, are particularly affected. This situation demands urgent attention to understand the implications for investor rights and potential recovery avenues.

Background of the Allegations

The root of the issue stems from a press release issued by Applied Therapeutics on November 27, 2024. The announcement revealed that the company received a Complete Response Letter (CRL) from the FDA regarding its New Drug Application (NDA) for govorestat, the entity's flagship drug. The FDA's communication indicated they could not approve the application due to incomplete clinical data, a major setback for the firm.

Following this disclosure, there was a significant crash in Applied Therapeutics' stock price, which plummeted from $10.21 per share on November 26, 2024, to a dismal $8.57 the very next day. The situation worsened as the prices continued to dive to $2.03 on November 29 and $1.75 on December 2, marking a staggering decline of over 80% in a matter of days.

But that wasn't the end of the bad news for the shareholders. Post-market hours on December 2, Applied Therapeutics revealed it received a 'warning letter' from the FDA concerning severe issues related to its clinical trials, further alarming investors about the ramifications. Consequently, the stock saw more declines, closing at $1.29 on December 5, 2024.

Your Rights as Shareholders

For shareholders affected by this substantial downturn, it is crucial to understand your rights. The Gross Law Firm expressly encourages impacted investors to come forward for potential lead plaintiff roles in the class action. Importantly, opting to become a lead plaintiff is not necessary to benefit from any recovery secured through legal action.

There exists a specific deadline: shareholders can register until February 18, 2025. Those expressing interest will be enrolled in portfolio monitoring software to keep them informed on the case’s progress.

This legal action primarily seeks to hold Applied Therapeutics accountable for the alleged misleading statements that may have artificially inflated its stock prices, causing investors to incur significant financial losses when the true state of the company became apparent.

Next Steps for Interested Parties

If you are among those who acquired Applied Therapeutics shares during the specified class period, it’s advisable to register promptly with The Gross Law Firm. Participation comes with no financial obligations, and merely registering secures access to updates about the case. Many shareholders may find the legal proceedings not just necessary but crucial for their financial well-being.

The Gross Law Firm stands out as a nationally recognized entity specializing in class action lawsuits, advocating for the rights of investors affected by deceitful corporate practices.

Conclusion

In these challenging times for Applied Therapeutics shareholders, understanding your rights is more essential than ever. Stay informed, register for updates, and consider your options for participation in this ongoing legal process. As the situation unfolds, the actions taken now could be pivotal for your financial recovery.

For further assistance, reach out to The Gross Law Firm at 15 West 38th Street, 12th floor, New York, NY 10018, or call them at (646) 453-8903 for direct inquiries and assistance.