Shareholder rights law firm Robbins LLP is calling on investors who lost money investing in Aardvark Therapeutics, Inc. to come forward following a class action lawsuit alleging the company misled the public. The legal action targets those who purchased common stock during the company’s initial public offering on February 13, 2025, or anyone who acquired securities between that date and May 14, 2026. At the center of the dispute is ARD-101, a drug candidate designed to treat hyperphagia in patients with Prader-Willi Syndrome.
According to the complaint, Aardvark Therapeutics painted an overly optimistic picture of ARD-101’s safety and effectiveness to attract investors. While early data suggested the drug was well tolerated and capable of inducing satiety, the lawsuit alleges that the company hid critical risks. These undisclosed issues eventually came to light through two major crashes in the company’s stock price. First, shares plummeted over fifty percent in early 2026 after Aardvark voluntarily paused its Phase 3 HERO trial due to cardiac concerns discovered during safety monitoring.
The situation worsened in May 2026 when the FDA imposed a full clinical hold on the company’s investigational new drug application for ARD-101. This regulatory blow caused another sharp decline in share value as all ongoing clinical studies were halted. The legal team argues that these events prove previous corporate statements were materially false and misleading, leaving stockholders to shoulder significant financial losses as a result of overestimated commercial prospects.
Robbins LLP is now searching for a lead plaintiff to represent the interests of all affected class members throughout the litigation process. Potential candidates must submit their request for appointment by October 13, 2026. The firm emphasizes that participating does not require upfront costs as they operate on a contingency fee basis, meaning they are only paid if a recovery is successful. Investors who do not seek leadership roles can still remain part of the class if the case reaches a resolution.