Photo credit: www.investing.com
Potential Legal Action Against Applied Therapeutics: Investors Urged to Come Forward
Faruqi & Faruqi, LLP, a prominent national securities law firm, is probing potential claims against Applied Therapeutics, Inc. (NASDAQ: APLT). This investigation is particularly relevant for investors who may have incurred losses exceeding $50,000 between January 3, 2024, and December 2, 2024. Investors are encouraged to reach out to securities litigation partner James (Josh) Wilson for a discussion regarding their legal options.
Legal Timeline and Securities Class Action
Faruqi & Faruqi reminds investors about the approaching deadline of February 18, 2025, to file for the lead plaintiff position in a federal securities class action against Applied Therapeutics. The firm, established in 1995 and with multiple offices across the United States, has a strong track record, having recovered significant amounts for investors over the years.
Claims of Misleading Information
The foundation of the complaint accuses Applied Therapeutics and its executives of violating federal securities laws by issuing false and misleading statements regarding the company’s Phase III INSPIRE trial. Notably, the allegations point to significant issues, such as electronic data capture problems and a dosing error during the trial’s dose-escalation phase—issues that were not disclosed to investors.
Recent Developments Impacting Stock Value
On November 27, 2024, Applied Therapeutics issued a press release revealing that the U.S. Food and Drug Administration (FDA) had sent a Complete Response Letter (CRL) concerning its New Drug Application (NDA) for govorestat, a treatment for Classic Galactosemia. The CRL indicated that the application could not be approved in its current form due to identified deficiencies in the clinical data.
This announcement resulted in a significant drop in the company’s stock price, which fell by $1.64, or 16.06%, closing at $8.57 per share on the same day. Furthermore, on December 3, 2024, the FDA issued a Warning Letter that suggested Applied Therapeutics had been aware of substantial issues with the NDA since at least May 2024. Following this revelation, shares plummeted further to close at $1.38 per share on December 4, 2024, marking an 18.34% decline on that day alone.
Role of Lead Plaintiff
The lead plaintiff in a class action lawsuit is an investor with the greatest financial interest in the case who is also representative of the class and capable of directing the litigation. Investors interested in taking on this role may approach the court or remain as absent members of the class. Importantly, participation in leadership does not affect the potential recovery from any settlements achieved.
Invitation for Information
Faruqi & Faruqi urges anyone with knowledge regarding the conduct of Applied Therapeutics, including former employees, shareholders, and whistleblowers, to reach out. These insights could prove crucial in the ongoing investigation and subsequent legal actions.
For further information and updates, interested individuals can follow Faruqi & Faruqi on LinkedIn, X, or Facebook.
For the original press release and details, visit newsfilecorp.com.
Source
www.investing.com