#USA #New York #Class Action #Levi & Korsinsky #Applied Therapeutics

Investors in Applied Therapeutics, Inc. Face Class Action for Significant Losses on Stock

In a recent notification, Levi & Korsinsky, LLP, a law firm specializing in investor rights, has called for investors in Applied Therapeutics, Inc. (NASDAQ: APLT) to take part in a class action lawsuit. This initiative aims to provide a platform for individuals who experienced financial losses due to purported securities fraud perpetrated by the company.

Class Action Lawsuit Details

The lawsuit encompasses a specific period from January 3, 2024, to December 2, 2024, during which numerous investors allege that they suffered losses as a result of misleading statements made by Applied Therapeutics regarding the status of their lead drug candidate, govorestat. A complete overview of the allegations suggests that significant omissions and misrepresentations regarding clinical trials and FDA approvals led to a drastic decline in the company’s stock price.

Impact on Stock Prices

The situation escalated on November 27, 2024, when Applied Therapeutics announced they had received a Complete Response Letter (CRL) from the FDA concerning their New Drug Application (NDA) for govorestat. This letter indicated that the FDA had reviewed the NDA and deemed the application unapprovable in its current form, citing various deficiencies in the clinical submissions.

Following this news, Applied Therapeutics’ stock plummeted from a closing price of $10.21 on November 26, 2024, to $8.57 the very next day. The following days saw a marked decline, with the stock price hitting a startling low of $1.75 on December 2, 2024 – an over 80% drop from the pre-announcement levels.

Moreover, after market closure on December 2, the company disclosed it had received a “warning letter” from the FDA related to the deficiencies that contributed to the CRL. This further fueled negative sentiment among investors, as the seriousness of the clinical trial issues became clearer, and stock prices continued to decline sharply.

Next Steps for Affected Investors

Investors who incurred losses during this critical time are urged to act quickly. The deadline to request that the Court appoint an individual as lead plaintiff is February 18, 2025. Importantly, participating in this class action does not mandate that investors serve as a lead plaintiff to be eligible for potential compensation.

No Financial Obligation to Participate

Levi & Korsinsky reassures affected investors that there is no cost associated with joining the class action. This means that eligible investors can explore their options for recovery without incurring any fees. The firm has a strong reputation, having secured millions in compensation for shareholders over the past two decades and consistently ranked as a leading firm in securities litigation.

Contact Information for Interested Investors

Investors seeking further information or wishing to enlist in the class action may contact attorney Joseph E. Levi via email at [email protected] or by phone at (212) 363-7500. For more details, a dedicated link provides the opportunity for shareholders to submit their claims electronically.

In conclusion, this class action lawsuit by Levi & Korsinsky presents a critical opportunity for investors in Applied Therapeutics, Inc. to join forces in seeking justice and potential financial recovery after the company’s significant stock decline following its announcements in November 2024. As the case progresses, affected shareholders should remain vigilant and responsive to any updates regarding the legal proceedings.