Aardvark Therapeutics Faces Securities Fraud Lawsuit Over Safety Disclosures

The lawsuit targets the company’s disclosures between February 13, 2025, and May 14, 2026. According to the complaint, Aardvark allegedly overstated the commercial and clinical viability of ARD-101, a treatment for hyperphagia in Prader-Willi Syndrome. Plaintiffs claim that defendants failed to disclose critical safety data, specifically reversible cardiac observations like QRS prolongation, which appeared during trials at higher-than-target doses.

The truth behind these omissions surfaced in two stages. On February 27, 2026, Aardvark announced a voluntary pause of its Phase 3 HERO trial, causing the stock to crash by over 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. That announcement triggered an additional 32.1% decline in share value. Reed Kathrein, the partner at Hagens Berman leading the investigation, stated that the firm is scrutinizing claims that Aardvark obscured the drug's safety and efficacy to inflate its market prospects.

Investors who purchased Aardvark common stock during the class period have until October 13, 2026, to file a motion to serve as Lead Plaintiff. The firm is also encouraging whistleblowers with non-public information to come forward, citing potential rewards under SEC programs for those who assist in the recovery efforts.