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Levi & Korsinsky Alerts Shareholders of Aardvark Therapeutics Lawsuit

Levi & Korsinsky, LLP has officially notified shareholders of Aardvark Therapeutics, Inc. (NASDAQ: AARD) regarding the filing of a significant class action lawsuit. This suit is aimed at protecting investors who purchased securities between February 13, 2025, and May 14, 2026, as well as those involved in the company's initial public offering (IPO) in February 2025. Investors have until October 13, 2026, to apply for lead plaintiff status in this case.

Background of the Case

The class action arises from claims that Aardvark Therapeutics misrepresented the safety and efficacy of its drug candidate, ARD-101. Although the company claimed that ARD-101 was largely restricted to the gut with minimal systemic absorption, recent disclosures have raised serious concerns. Notably, the SEC filings stated that the compound had a favorable safety profile, containing no serious adverse events. However, the lawsuit contends that these assertions were misleading and failed to properly disclose crucial risks that later culminated in serious regulatory actions from the FDA.

Specific Allegations

The lawsuit outlines several allegations, including:

• - Aardvark's SEC filings suggested that ARD-101 had only generic safety warnings, while omitting specific details about cardiac risk factors.
• - The company was accused of presenting overly optimistic data about the drug's performance and safety profile, specifically regarding its cardiotoxicity implications, which were not thoroughly monitored.
• - When Aardvark announced its voluntary pause of the Phase 3 HERO clinical trial—citing cardiac observations at higher therapeutic doses—it confirmed that the drug might have serious safety concerns that had not been previously disclosed to investors. Following this announcement, Aardvark's stock price plummeted by over 56%, revealing the stark impact of these revelations on shareholder value.

Financial Impact

The financial stakes are significant. Aardvark raised approximately $87.6 million from its IPO, selling shares at $16 each. However, by May 15, 2026, the stock had drastically fallen to $4.57, marking a staggering decline of roughly 71.4%. This decline is central to the class action as it directly correlates to the alleged misstatements and omissions regarding the safety of ARD-101.

Legal Considerations

Levi & Korsinsky has emphasized that the class action is being pursued under the Private Securities Litigation Reform Act of 1995 in the United States District Court for the Southern District of California. Investors seeking potential recovery from their losses are encouraged to submit their trading history, which will be reviewed by an attorney at no cost.

Next Steps for Investors

For Aardvark Therapeutics shareholders, the upcoming date of October 13, 2026, serves as a pivotal deadline. It is essential for those affected to consider their eligibility to recover losses by partaking in this significant litigation. Interested parties can contact Levi & Korsinsky at (212) 363-7500, or send an email to [email protected]. A robust understanding of the situation around ARD-101 and meticulous tracking of one's investment transactions may be key components in seeking justice in this case.

Summary

This lawsuit against Aardvark Therapeutics stands as a reminder of the critical importance of transparency in corporate communications. The shareholders' rights to accurate and comprehensive information regarding investment risks are paramount. As the legal proceedings unfold, the outcome may set significant precedents in the landscape of securities litigation, particularly concerning drug safety disclosures.

Levi & Korsinsky, LLP has cultivated a strong reputation over two decades for advocating on behalf of shareholders in securities class actions. Investors who believe they have been adversely impacted should act quickly and seek the legal guidance necessary to navigate this complex situation. Time is of the essence as the lead plaintiff deadline approaches.