Class Action Sued Against Aardvark Therapeutics Over IPO Misrepresentations
News provided byAardvark Therapeutics, Inc · 2 min read
NEW YORK, Sept. 3, 2026 /CourierPR/ -- Pomerantz Law Firm Announces Class Action Against Aardvark Therapeutics, Inc.
A class action lawsuit has been filed against Aardvark Therapeutics, Inc. and certain of its officers and directors in the United States District Court for the Southern District of California. The complaint, docketed under 26-cv-04643, seeks damages on behalf of investors who purchased or acquired Aardvark securities between February 13, 2025, and May 14, 2026.
According to the complaint, the lawsuit is based on alleged misrepresentations in the Offering Documents issued in connection with Aardvark's initial public offering (IPO) conducted on February 13, 2025. Specifically, the plaintiffs claim that the Offering Documents contained untrue statements of material fact or omitted necessary facts, thereby misleading investors. The complaint also alleges that throughout the class period, defendants made materially false and misleading statements regarding the company's business, operations, and prospects.
The lawsuit centers on Aardvark's lead product candidate, ARD-101, which is a "gut-restricted" small-molecule agonist of certain Bitter Taste Receptors (TAS2Rs) designed to address hunger and treat metabolic diseases, particularly Prader-Willi Syndrome (PWS). The company's research suggests that activating TAS2Rs can induce the secretion of endogenous signaling molecules, including cholecystokinin (CCK), which is known for its role in suppressing hunger.
On January 23, 2025, Aardvark filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission (SEC) in connection with the IPO. The registration statement was declared effective on February 12, 2025. On the same day, Aardvark's common stock began trading on the Nasdaq Global Select Market under the ticker symbol "AARD." The company issued 5,888,000 shares at an offering price of $16.00 per share, raising $87,613,440 after underwriting discounts and commissions.
However, the truth began to emerge on February 27, 2026, when Aardvark announced a voluntary pause of its Phase 3 Hunger Elimination or Reduction Objective (HERO) trial. The company cited "reversible cardiac observations at above target therapeutic doses found during routine safety monitoring in a healthy volunteer study" as the reason for the pause. As a result, Aardvark's stock price fell $7.02 per share, or 56.2%, to close at $5.47 per share on March 2, 2026.
On May 14, 2026, the U.S. Food and Drug Administration (FDA) placed a full clinical hold on Aardvark's investigational new drug application (IND) for ARD-101, related to the company's previously announced voluntary pause. This hold applies to all ongoing clinical studies under the IND, including the Phase 3 HERO trial and the Phase 3 open-label extension trial. Aardvark's stock price dropped $2.16 per share, or 32.1%, to close at $4.57 per share on May 15, 2026.
As of the time the complaint was filed, Aardvark's common stock continues to trade below the $16.00 per share IPO price, causing significant financial damage to investors.