Aardvark Therapeutics Faces Class Action Over ARD-101 Safety Claims

The litigation, filed in the U.S. District Court for the Southern District of California, targets investors who purchased securities between February 13, 2025, and May 14, 2026. The complaint centers on claims that Aardvark’s IPO documents and public disclosures painted ARD-101 as a gut-restricted therapy with minimal systemic absorption and no serious side effects. However, the company announced a voluntary pause of its HERO trial in February 2026, citing unexpected cardiac observations, followed by an FDA-mandated clinical hold in May.

For institutional investors, the stakes involve significant capital erosion, as the stock has dropped from its $16.00 IPO price to approximately $4.57. Levi & Korsinsky, the firm representing the class, noted that Securities Act claims under Sections 11 and 15 do not require proof of intent, potentially simplifying the burden of proof for fiduciaries. Investors seeking lead plaintiff status—a role involving oversight of counsel and litigation strategy—must file by October 13, 2026. While institutional holders with the largest losses are typically prioritized for this role, smaller investors remain eligible to participate in any eventual recovery without taking on active leadership duties.