Investors of Applied Therapeutics Have Class Action Options
Investor Opportunities in Class Action Lawsuit
Recent developments involving Applied Therapeutics, Inc. have created a significant opportunity for investors who may have faced substantial losses. The esteemed law firm Robbins Geller Rudman & Dowd LLP has announced that individuals who acquired or purchased Applied Therapeutics securities during a specified timeframe may seek to become lead plaintiffs in a class action lawsuit. This represents a critical chance for affected investors to participate in seeking justice and potential financial recovery.
Understanding the Class Period
The class action lawsuit specifically involves those who bought Applied Therapeutics securities from January 3, 2024, until December 2, 2024. This time frame encompasses crucial announcements and events that may have impacted stock performance and investor confidence.
Details of the Lawsuit
At the heart of the allegations is a complaint prompting claims against the company and certain executives for potential violations of the Securities Exchange Act of 1934. The lawsuit alleges that misleading statements were made, particularly concerning the submission of a New Drug Application (NDA) to the FDA for govorestat, aimed at treating Classic Galactosemia.
Impacts of the Recent FDA Responses
On November 27, 2024, Applied Therapeutics disclosed that the FDA issued a Complete Response Letter regarding their NDA, effectively stating that they were unable to approve the application in its current form, drawing attention to significant deficiencies in clinical methodology and data. This revelation caused an alarming decline in the company’s stock price, dropping over 80% across three trading sessions.
Subsequent FDA Warnings
Further compounding these challenges, on December 2, 2024, Applied Therapeutics reported additional issues flagged by the FDA related to electronic data capture, which corroborated previous concerns about improper trial protocols. Following this announcement, stock value plummeted by more than 26% in the aftermath.
The Role of Lead Plaintiffs
For those interested in leading the class action, the Private Securities Litigation Reform Act of 1995 allows investors who purchased Applied Therapeutics securities during the outlined class period to apply. A lead plaintiff typically has significant financial interests and will act on behalf of fellow investors in pursuing this legal action.
About the Law Firm
Robbins Geller Rudman & Dowd LLP is a well-respected firm in the realm of investors' rights, known for securing significant monetary compensation for investors involved in securities fraud cases. Their track record highlights their expertise and commitment to advocating for the rights of shareholders.
Contact Information
For those who believe they have been impacted and are interested in exploring their options, contacting the firm is highly encouraged. J.C. Sanchez and Jennifer N. Caringal are available to provide detailed insights and assistance regarding the process of filing and potential participation in the class action.
Frequently Asked Questions
What is the status of the class action lawsuit against Applied Therapeutics?
The lawsuit is currently seeking lead plaintiffs to represent investors who experienced significant financial losses during the designated class period.
Who can file as a lead plaintiff in the lawsuit?
Any investor who purchased Applied Therapeutics securities from January 3, 2024, to December 2, 2024, is eligible to seek lead plaintiff status.
What allegations are made in the class action lawsuit?
The allegations include misleading statements related to the FDA's review of a New Drug Application and subsequent warnings concerning trial protocols.
How has the stock price of Applied Therapeutics been affected?
The company’s stock price has seen significant declines following the FDA's responses, dropping over 80% and then an additional 26% shortly thereafter.
Why is it important to have a lead plaintiff?
The lead plaintiff helps guide the lawsuit on behalf of all class members, ensuring that their interests are actively represented throughout the legal process.
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