#United States #San Diego #Class Action #Applied Therapeutics #stock losses

Hopeful Justice for Investors in Applied Therapeutics

The law firm Robbins Geller Rudman & Dowd LLP has issued an important notice for investors of Applied Therapeutics, Inc. (NASDAQ: APLT), particularly those who purchased shares from January 3, 2024, to December 2, 2024. Investors who have suffered significant financial losses during this time frame may have the opportunity to step forward as lead plaintiffs in a proposed class action lawsuit against the company.

The case, captioned "Alexandru v. Applied Therapeutics, Inc." (No. 24-cv-09715, S.D.N.Y.), raises serious allegations against Applied Therapeutics and several of its top executives regarding violations of the Securities Exchange Act of 1934. The firm encourages affected investors to act quickly, with the deadline set for February 18, 2025, to apply for the lead plaintiff position.

Background of the Case

Applied Therapeutics is a clinical-stage biopharmaceutical company focused on developing treatments for rare diseases. The litigation stems from critical events that occurred during the company's drug application process. On January 3, 2024, company officials announced the submission of a New Drug Application (NDA) for their product, govorestat, intended to treat Classic Galactosemia. However, subsequent developments led to serious concerns for investors.

The allegations state that during the class period, the company's executives made misleading statements and failed to disclose essential information regarding compliance with trial protocols and clinical standards. These omissions raised substantial risks regarding the validity of trial data presented to the U.S. Food and Drug Administration (FDA).

Major Fallout

The situation escalated sharply when, on November 27, 2024, it was disclosed that the FDA issued a Complete Response Letter regarding the NDA for govorestat. This letter indicated that the FDA could not approve the NDA in its current state due to identified deficiencies in the clinical trial application. The announcement triggered a drastic decline in Applied Therapeutics' stock price, which plummeted by over 80% within three trading sessions—a devastating financial impact for invested shareholders.

On December 2, 2024, further disclosures revealed that the FDA had sent a warning regarding electronic data capture and cited a dosing error in the trial. This news compounded the stock's woes, as investors witnessed an additional drop of around 26% over just three trading days.

Legal Steps to Take

The Private Securities Litigation Reform Act of 1995 allows investors who acquired shares of Applied Therapeutics during the designated period to pursue leadership in the class action. As a lead plaintiff, an investor would represent the class and sustain the responsibility of guiding the litigation process for the collective benefit of all affected investors. While leading the lawsuit may provide an avenue for additional compensation, it is vital to note that serving as lead plaintiff is not a prerequisite for recovering potential damages.

About the Law Firm

Robbins Geller Rudman & Dowd LLP is regarded as a top-tier law firm and has an established track record in representing investors in securities fraud cases. Over the years, the firm has secured billions for investors, emphasizing their commitment to justice and accountability within the securities market. Their expertise and substantial experience make them a formidable advocate in class action lawsuits.

For more information or to express interest in leading the class action, affected investors can visit their website or contact the attorneys directly via calls or emails. The window for participation is short, so prompt action is advised.

Conclusion

Investors who faced substantial losses from their investment in Applied Therapeutics have a pathway for potential recovery through the class action lawsuit. With deadlines approaching, now is the time for investors to seek justice and accountability from the involved parties.

For those interested, more details can be found via Robbins Geller's official channels, potentially marking a crucial step towards rectifying significant financial losses within the biopharmaceutical industry.