Applied Therapeutics Faces Securities Lawsuit Over Major Stock Drop - Investors Urged to Take Action

Applied Therapeutics Faces Legal Challenges

Recently, Applied Therapeutics, Inc. found itself at the center of a class-action securities lawsuit filed by Levi & Korsinsky, LLP. The law firm is seeking to represent investors harmed by what they allege to be securities fraud that occurred between January 3, 2024, and December 2, 2024.

Background of the Case

The foundation of this lawsuit stems from a disheartening trajectory following news related to the company's leading drug candidate, govorestat. On November 27, 2024, Applied Therapeutics announced receiving a Complete Response Letter (CRL) from the FDA regarding the New Drug Application (NDA) for govorestat, which essentially means that the FDA found deficiencies that prevented it from approving the application in its current form. This disclosure had a catastrophic impact on the stock price.

The stock had been trading at $10.21 per share just a day prior, but the fallout was swift. By November 29, 2024, the price plummeted to $2.03, reflecting an alarming decline of more than 80%. The situation was further exacerbated after the company disclosed a “warning letter” from the FDA on December 2, which highlighted significant issues in its clinical trial. Following this news, the share price dwindled even further, resulting in share prices of $1.69 on December 3 and dropping to $1.29 by December 5.

Investor Rights and Actions

Levi & Korsinsky emphasizes the urgency for affected investors to come forward. The firm has urged individuals who suffered financial losses in Applied Therapeutics to act swiftly and request to be appointed as lead plaintiffs by February 18, 2025. Notably, investors' chances to participate in any potential recovery do not hinge on their role as lead plaintiffs; simply being a class member may qualify them for compensation.

Legal Representation

Levi & Korsinsky brings two decades of experience to the table, boasting a history of securing substantial sums for shareholders affected by corporate malpractice. Their expertise in securities litigation positions them as a formidable ally for investors seeking accountability and compensation. The firm operates without demanding upfront fees, ensuring that class members can pursue their claims without incurring any out-of-pocket costs.

Conclusion

As the lawsuit unfolds, affected investors are encouraged to stay informed and involved. The current legal landscape surrounding Applied Therapeutics provides a critical opportunity for securing justice for those who trustingly invested in the company. Timely action is crucial; thus, interested parties are urged to reach out to Levi & Korsinsky for further information on how to proceed.

For inquiries or to begin the process, investors can contact Joseph E. Levi, Esq. via phone at (212) 363-7500 or through email at [email protected].