Aardvark Therapeutics Faces Class Action Lawsuit Over Drug Trial Failures

The complaint filed by Robbins LLP centers on claims that Aardvark overstated the prospects of ARD-101, a therapy designed to treat hyperphagia in Prader-Willi Syndrome patients. While the company initially touted the drug as a well-tolerated, satiety-inducing treatment, the lawsuit alleges these claims masked significant safety risks. The legal challenge represents those who purchased Aardvark common stock during the specified Class Period, seeking to hold the company accountable for material misstatements regarding its clinical development.

Investor confidence collapsed following a series of regulatory setbacks. On February 27, 2026, Aardvark voluntarily paused its Phase 3 HERO trial, citing cardiac observations detected during safety monitoring. The announcement triggered a 56.2% decline in the company's share price. The situation intensified on May 14, 2026, when the FDA imposed a full clinical hold on the drug’s investigational new drug application. This regulatory intervention caused a further 32.1% drop in the stock price, closing at $4.57 per share the following day. Investors who suffered losses have until October 13, 2026, to apply for lead plaintiff status in the ongoing proceedings.