Applied Therapeutics Faces Securities Lawsuit
Analysis based on 6 articles · First reported Jan 08, 2025 · Last updated Jan 22, 2025
The market is significantly impacted by the dramatic decline in Applied Therapeutics' stock price, which fell over 80% due to the United States — Food and Drug Administration's rejection of its drug candidate and a subsequent warning letter. This event has led to a class action securities lawsuit against Applied Therapeutics, creating uncertainty for investors and potentially affecting the broader pharmaceutical sector's investor confidence in drug development processes.
Applied Therapeutics is facing a class action securities lawsuit initiated by Levi & Korsinsky on behalf of investors who suffered losses between January 3, 2024, and December 2, 2024. The lawsuit stems from a significant decline in Applied Therapeutics' stock price after the United States — Food and Drug Administration issued a Complete Response Letter for its lead drug candidate, govorestat, on November 27, 2024, citing deficiencies in the clinical application. Following this, on December 2, 2024, Applied Therapeutics disclosed a 'warning letter' from the United States — Food and Drug Administration regarding clinical trial issues, which further exacerbated the stock's decline. The stock price plummeted from $10.21 per share on November 26, 2024, to $1.29 per share by December 5, 2024, representing a total decline of over 80%. Investors have until February 18, 2025, to request to be appointed as lead plaintiff in the lawsuit.
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