Aardvark Therapeutics Faces Class Action Over IPO Disclosures

The litigation, filed in the U.S. District Court for the Southern District of California, targets the company and several of its officers and directors. It represents investors who purchased Aardvark common stock between the company’s February 2025 initial public offering and May 14, 2026. Plaintiffs contend that the firm’s registration statements failed to disclose that ARD-101 carried greater safety risks than publicly acknowledged, leading to an overstatement of its regulatory and clinical potential.

Signs of trouble surfaced in February 2026, when the company voluntarily paused its Phase 3 HERO trial, citing cardiac observations identified during safety monitoring. The stock price plummeted 56.2% following the announcement. The situation worsened in May 2026 when the FDA imposed a full clinical hold on the drug's investigational new drug application, causing shares to drop an additional 32.1%. As of the filing, the stock continues to trade significantly below the original $16.00 IPO price. Investors seeking to serve as lead plaintiff in the case have until October 13, 2026, to petition the court.