Legal Action Urged for Investors in Applied Therapeutics, Inc.
Legal Action Urged for Investors in Applied Therapeutics, Inc.
The Law Offices of Frank R. Cruz are reaching out to investors of Applied Therapeutics, Inc., who may have sustained losses due to recent developments regarding the company's stock. A class action lawsuit has been initiated for those who purchased Applied Therapeutics (NASDAQ: APLT) securities, particularly focusing on actions taken between January 3, 2024, and December 2, 2024. Investors interested in participating have until February 18, 2025, to make their move.
Understanding the Situation
What Led to the Losses?
On November 27, 2024, Applied Therapeutics made a significant disclosure when it announced that it received a Complete Response Letter from the U.S. Food and Drug Administration (FDA). This letter addressed the New Drug Application for the company's treatment for Classic Galactosemia, known as govorestat. The FDA concluded that the application could not be approved in its current form due to several deficiencies highlighted during its review.
This news had a dramatic impact on the market; the stock price plummeted by $6.54, equating to a staggering 76.3% decline, which left investors reeling and searching for answers.
Further Developments
The situation worsened on December 2, 2024, when another revelation came to light. Applied Therapeutics informed stakeholders that it had received a warning letter from the FDA. This letter pointed out concerns regarding electronic data capture and a dosing error during the clinical trial for govorestat. As a result, over the next few trading days, the stock dipped again by $0.46, or 26.3%, closing at just $1.29 per share.
Details of the Class Action Lawsuit
What Does the Lawsuit Entail?
The lawsuit revolves around claims made by defendants during the class period. Allegations suggest they issued materially false and misleading statements alongside failing to disclose critical adverse information concerning Applied Therapeutics’ operations and overall business prospects. It is stated that the company did not follow appropriate trial protocols and clinical standards, which substantially increased the risk that the FDA might reject the NDA.
Furthermore, the lawsuit asserts that the defendants' upbeat statements throughout the relevant period misled investors, providing them with a false sense of security regarding the company's performance and future.
Participate in the Legal Process
If you are an investor who experienced a loss due to these developments regarding Applied Therapeutics (NASDAQ: APLT), the Law Offices of Frank R. Cruz encourage you to reach out. The firm urges anyone with relevant information or who wishes to learn more about this lawsuit and their rights to contact them directly.
Contact Information
For any inquiries regarding participation in the class action or to discuss your legal rights, investors can reach out to:
Law Offices of Frank R. Cruz
212 Avenue of the Stars, Suite 800
Telephone: 310-914-5007
Email: info@frankcruzlaw.com
Visit our website: www.frankcruzlaw.com
Frequently Asked Questions
What prompted the class action lawsuit against Applied Therapeutics?
The lawsuit emerged after the company received negative feedback from the FDA, which caused substantial declines in its stock price.
Who can participate in the class action lawsuit?
Investors who purchased Applied Therapeutics securities during the specified time frame may be eligible to participate in the lawsuit.
What should I do if I want to join the lawsuit?
Interested investors should contact the Law Offices of Frank R. Cruz for guidance on how to proceed and file a lead plaintiff motion.
What are the potential outcomes of this lawsuit?
The outcome may vary, but if successful, it could result in financial compensation for the affected investors.
How can investors get more information?
Investors can reach out via phone, email, or through the Law Offices of Frank R. Cruz's website for further details.
About The Author
Contact Addison Perry privately here. Or send an email with ATTN: Addison Perry as the subject to contact@investorshangout.com.
About Investors Hangout
Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/
The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.