Aardvark Therapeutics’ shares lost more than 70% of their IPO value across two market events after the Company disclosed a Phase 3 safety pause and then a full FDA clinical hold on ARD-101, which a securities class action alleges corrected earlier representations that the drug was “99% gut-restricted” with minimal systemic exposure.

NEW YORK, Aug. 26, 2026 /PRNewswire/ — Levi & Korsinsky, LLP alerts investors in Aardvark Therapeutics, Inc. (NASDAQ: AARD) that a securities class action has been filed on behalf of shareholders who purchased or acquired securities between February 13, 2025 and May 14, 2026, including shares acquired in or traceable to the Company’s February 2025 initial public offering. Submit your information now. You may also contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com or (212) 363-7500.

AARD priced its IPO at $16.00 per share and closed at $4.57 on May 15, 2026, a decline of $11.43 per share, or 71.4%. The market repricing came in two moves: a drop of $7.02 per share (56.2%) to $5.47 on March 2, 2026, followed by a further drop of $2.16 per share (32.1%) on May 15, 2026. Investors have until October 13, 2026 to seek lead plaintiff status.

Two Market Events That Repriced AARD Shares

On February 27, 2026, Aardvark announced it was voluntarily pausing the Phase 3 HERO trial, citing “reversible cardiac observations at above target therapeutic doses found during routine safety monitoring in a healthy volunteer study,” and stated it no longer anticipated announcing topline HERO data in the third quarter of 2026. On May 14, 2026, the Company announced the FDA had placed a full clinical hold on its investigational new drug application for ARD-101, covering both the Phase 3 HERO trial and the Phase 3 open-label extension. The lawsuit contends these announcements corrected earlier statements that allegedly overstated ARD-101’s safety and tolerability.

Market Impact by the Numbers

• IPO price: $16.00 per share; 5,888,000 shares sold for proceeds of $87,613,440
• First disclosure decline: $7.02 per share, or 56.2%, to a close of $5.47 on March 2, 2026
• Second disclosure decline: $2.16 per share, or 32.1%, to a close of $4.57 on May 15, 2026
• Cumulative decline from the offering price: $11.43 per share, or 71.4%
• As alleged, AARD common stock has continued to trade below the $16.00 offering price
• Class Period: February 13, 2025 through May 14, 2026

“A two-stage decline of this magnitude, first on a voluntary trial pause and then on a full FDA clinical hold, raises serious questions about whether investors were given accurate information about ARD-101’s safety profile,” — Joseph E. Levi, Esq.

Find out if you might qualify to recover losses or call (212) 363-7500.

WHY LEVI & KORSINSKY: Over the past 20 years, Levi & Korsinsky LLP has established itself as a nationally-recognized securities litigation firm that has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. The firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services’ Top 50 Report as one of the top securities litigation firms in the United States.

Frequently Asked Questions About the AARD Lawsuit

Q: How much did AARD stock drop? A: Shares fell approximately 71.4% from the $16.00 IPO price, a decline of $11.43 per share, after the Company disclosed a voluntary pause of the Phase 3 HERO trial tied to cardiac observations and, later, a full FDA clinical hold on the ARD-101 IND. Investors who purchased shares during the Class Period at artificially inflated prices and suffered losses may be eligible to seek compensation.

Q: What specific misstatements does the AARD lawsuit allege? A: The complaint alleges Aardvark Therapeutics made materially false or misleading statements regarding ARD-101’s safety and tolerability, including representations that the drug was approximately 99% gut-restricted with minimal systemic exposure, well-tolerated at all dose levels, and had produced no serious adverse events. When the trial pause and FDA clinical hold were disclosed, the stock price declined sharply.

Q: What court was the AARD class action filed in? A: The case was filed in the United States District Court for the Southern District of California, governed by the Private Securities Litigation Reform Act of 1995.

Q: What do AARD investors need to do right now? A: Investors may gather brokerage records showing purchase dates, share quantities, and prices paid. Submit your information for a no-cost, no-obligation evaluation of your potential recovery. No immediate action is required to remain eligible as an absent class member.

Q: What is a lead plaintiff and why does it matter? A: A lead plaintiff is the investor appointed by the court to represent the entire class. Lead plaintiffs are typically investors with the largest documented losses. Being appointed does not increase individual recovery but gives direct oversight of how the case is run.

Q: What if I already sold my AARD shares — can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought during the Class Period and sold at a loss may still be eligible to participate.

Q: What does it cost me to participate? A: There is no upfront cost to submit your information and review whether you may be eligible to recover. Should you choose to participate in the securities class action, they are generally handled on a contingency basis, with any attorneys’ fees and expenses subject to court approval.

Q: Do I need to go to court or give testimony? A: No. The overwhelming majority of class members never appear in court or give depositions. If there is a settlement or recovery, eligible class members generally submit a claim form to seek their portion.

CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
jlevi@levikorsinsky.com
Tel: (212) 363-7500
Fax: (212) 363-7171

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