#Class Action #Robbins LLP #Applied Therapeutics

Investor Alert: Class Action Against Applied Therapeutics

On December 19, 2024, Robbins LLP announced the initiation of a class action lawsuit aimed at protecting the interests of investors who purchased shares of Applied Therapeutics, Inc. (NASDAQ: APLT). This legal action covers a critical period between January 3, 2024, and December 2, 2024, during which significant events transpired regarding the company's drug development trials.

Applied Therapeutics is a biopharmaceutical company focused on developing treatments for rare diseases. The lawsuit alleges that investors were misled regarding the results of the Phase III INSPIRE trial for govorestat, a drug designed to treat Galactosemia. Misleading statements were made by company representatives, expressing unwarranted confidence about the drug's efficacy and the company's future prospects.

Allegations Surface

According to the complaint, key misrepresentation incidents involve assurances regarding the achievements of govorestat's clinical trials and its upcoming regulatory submissions. Specifically, statements included promising results from the Phase 3 registrational ACTION-Galactosemia Kids study and the Phase 1/2 trial in adult patients. These assurances instilled a sense of confidence in investors as the company advanced through clinical trial phases.

However, on November 27, 2024, the company revealed that it had received a Complete Response Letter (CRL) from the FDA, indicating deficiencies in the clinical application for govorestat. Following this disclosure, the stock plummeted significantly, dropping from $8.57 to $2.03 just two days later. This decline was attributed to the news that severely compromised investor trust.

The situation worsened on December 2, 2024, when Applied Therapeutics announced the receipt of a