Aardvark Therapeutics Investors Face October 13 Deadline in Class Action

The complaint filed by Hagens Berman Sobol Shapiro LLP centers on claims that Aardvark provided misleading information regarding the safety and commercial potential of ARD-101, a treatment for Prader-Willi Syndrome. According to the litigation, the company failed to disclose that trials at above-target doses resulted in reversible cardiac observations, specifically QRS prolongation. These omissions reportedly led to an overstatement of the drug’s clinical prospects, including the Phase 3 HERO trial.

Market confidence collapsed in two distinct waves. On February 27, 2026, Aardvark announced a voluntary pause of its HERO trial, causing the stock price to drop more than 56%. The situation deteriorated further on May 14, 2026, when the FDA imposed a full clinical hold on the company’s investigational new drug application, halting all studies and triggering an additional 32.1% decline in share value. Reed Kathrein, a partner at Hagens Berman, stated the firm is investigating allegations that the company misrepresented the drug's development and efficacy to the public.