A securities class action alleges Aardvark Therapeutics' Chief Executive Officer, Chief Financial Officer, and former Chief Operating Officer controlled the safety representations about ARD-101 that preceded a Phase 3 pause and a full FDA clinical hold.
AARD INVESTOR ALERT
NEW YORK, Aug. 27, 2026 /PRNewswire/ -- SueWallSt alerts investors in Aardvark Therapeutics, Inc. (NASDAQ: AARD) of a pending securities class action on behalf of purchasers of Aardvark securities between February 13, 2025 and May 14, 2026, and purchasers in or traceable to the Company's February 2025 initial public offering. Find out if you may qualify to recover losses. You may also contact Joseph E. Levi, Esq. at jlevi@SueWallSt.com or (888) SueWallSt.
AARD shares were sold to the public at $16.00 per share and closed at $4.57 on May 15, 2026, a decline of $11.43 per share, or approximately 71.4%, from the offering price. To be considered for lead plaintiff, investors must file by October 13, 2026.
The Named Individual Defendants
The action names Tien-Li Lee, M.D., Chief Executive Officer and director at all relevant times; Nelson Sun, Chief Financial Officer at all relevant times and Chief Operating Officer since February 9, 2026; and Bryan Jones, Ph.D., who served as Chief Operating Officer until February 9, 2026. The pleading asserts that Lee and Sun signed or authorized the signing of the Registration Statement filed with the SEC in connection with the IPO.
Alleged Control Person Liability
- Each individual defendant allegedly possessed the power and authority to control the contents of Aardvark's SEC filings, press releases, and investor communications.
- The complaint charges that these officers received the challenged filings and releases before or shortly after issuance and had the ability to prevent or correct them.
- The action alleges the officers had access to material information about ARD-101's safety profile that was not available to public investors.
- Claims are asserted under Section 20(a) of the Exchange Act and Section 15 of the Securities Act, which reach individuals alleged to have controlled the primary violator.
- As averred, the officers are alleged to be personally liable for representations describing ARD-101 as approximately 99% gut-restricted, with limited systemic absorption and no serious adverse events.
- Sarbanes-Oxley Certification Obligations
Senior officers who certify periodic reports attest to the accuracy of those disclosures. The complaint charges that the certifications accompanying Aardvark's filings were inaccurate because ARD-101 was allegedly less safe than investors were led to believe, and its clinical, regulatory, and commercial prospects were overstated.
"Corporate officers have a duty to ensure their companies' public statements are accurate and complete. Here, the complaint contends that senior Aardvark officers controlled representations about ARD-101's safety profile that preceded a voluntary Phase 3 pause and a full FDA clinical hold." -- Joseph E. Levi, Esq.
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Frequently Asked Questions About the AARD Lawsuit
Q: Who are the defendants named in the AARD lawsuit? A: The complaint names Aardvark Therapeutics, Inc. and individual defendants including senior executives who signed SEC filings, made public statements, or certified financial disclosures under Sarbanes-Oxley.
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 specific misstatements does the AARD lawsuit allege? A: The complaint alleges Aardvark Therapeutics made materially false or misleading statements regarding the safety and tolerability of ARD-101, including claims that it was approximately 99% gut-restricted with limited systemic absorption and no serious adverse events, during the Class Period. When the voluntary pause of the Phase 3 HERO trial and the FDA's full clinical hold were disclosed, the stock price declined sharply.
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: 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.
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.
CONTACT:\
Levi & Korsinsky, LLP\
Joseph E. Levi, Esq.\
33 Whitehall Street, 27th Floor\
New York, NY 10004\
jlevi@SueWallSt.com\
Tel: (888) SueWallSt\
Fax: (212) 363-7171
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