Levi & Korsinsky Notifies APLT Investors of Class Action Lead Plaintiff Deadline: February 18, 2025

Levi & Korsinsky, LLP, a prominent law firm specializing in securities litigation, is reminding investors of the ongoing class action lawsuit filed against Applied Therapeutics, Inc. (NASDAQ: APLT). The lawsuit addresses potential securities fraud allegations, and interested parties are encouraged to act quickly, as the lead plaintiff deadline is set for February 18, 2025.

The class action relates to a significant period of stock price declines for Applied Therapeutics, following adverse developments concerning its key drug candidate, govorestat, and the company’s interactions with the U.S. Food and Drug Administration (FDA). This lawsuit aims to represent those who sustained financial losses due to what is alleged to be misleading information or omissions made by the company during the class period from January 3, 2024, to December 2, 2024.

Background of the Lawsuit

Applied Therapeutics, a biopharmaceutical company focused on discovering and developing treatments for rare diseases, has faced increasing legal scrutiny after a series of events impacted its stock price. The primary focus of the class action lawsuit is the company’s New Drug Application (NDA) for govorestat, which was initially hailed as a promising treatment for certain rare diseases.

However, on November 27, 2024, Applied Therapeutics received a Complete Response Letter (CRL) from the FDA regarding its NDA for govorestat. The CRL indicated that the FDA had identified significant deficiencies in the clinical application of the drug, a major setback for the company and its investors. This news caused a sharp drop in Applied Therapeutics’ stock price, which plummeted from $10.21 to $8.57 per share on the day following the announcement.

In an even more damaging blow, on December 2, 2024, the company disclosed that it had received a warning letter from the FDA regarding clinical trial-related issues, further eroding investor confidence. As a result, the company’s stock price continued to fall, reaching a low of $1.75 per share by the end of that trading day.

This sequence of events has led to the current class action lawsuit, with investors alleging that the company made false or misleading statements about its clinical trials and the likelihood of FDA approval for govorestat. The plaintiffs contend that these actions contributed to significant financial losses for shareholders.

Class Period and Lead Plaintiff Deadline

The class period for this lawsuit is from January 3, 2024, to December 2, 2024. This period is significant as it encompasses the time frame during which Applied Therapeutics allegedly misrepresented material facts that led to inflated stock prices. The lawsuit seeks to recover damages for investors who purchased shares during this period and who were impacted by the subsequent stock price declines.

Investors who purchased shares of Applied Therapeutics during this time and suffered losses may be eligible to participate in the class action. However, they must act swiftly, as the lead plaintiff deadline is set for February 18, 2025. To participate, investors do not need to serve as the lead plaintiff, but those who wish to do so must file their motion with the court by this deadline.

A lead plaintiff is typically a person or group of people who have sustained the largest financial losses during the class period and who take on a more active role in the litigation process. The lead plaintiff will work with the attorneys to help guide the case forward. However, even if an investor does not wish to serve as the lead plaintiff, they may still be able to recover damages by joining the class action.

What Investors Need to Know?

Investors who believe they may have been impacted by the events leading to the class action are strongly encouraged to reach out to Levi & Korsinsky, LLP, for guidance and to learn more about their options. The firm offers consultations to help investors understand whether they meet the criteria for participation and how to move forward with filing a claim.

Legal Implications for Applied Therapeutics

The class action lawsuit, if successful, could have significant financial and reputational consequences for Applied Therapeutics. Should the court rule in favor of the plaintiffs, the company may be required to compensate shareholders for their losses, which could amount to millions of dollars. In addition, the lawsuit may affect the company’s standing in the biotechnology and pharmaceutical industries, where investor trust is crucial for continued growth and development.

Furthermore, the legal scrutiny surrounding the company could lead to increased regulatory attention from the FDA and other agencies, adding another layer of complexity to the company’s ongoing operations. As this case moves forward, investors, analysts, and industry watchers will be closely monitoring the proceedings to see how they impact both Applied Therapeutics and the broader biopharmaceutical sector.

Steps to Take

For investors who believe they have been affected, it is important to take the following steps:

1. Review Investment Records: Make sure to gather proof of any shares purchased during the class period and keep track of any losses suffered.
2. Consult an Attorney: Reach out to a law firm specializing in securities class actions, such as Levi & Korsinsky, to discuss eligibility and options for participating in the case.
3. File a Lead Plaintiff Motion: If interested in serving as a lead plaintiff, file the necessary paperwork by the February 18, 2025 deadline.
4. Stay Informed: Keep up to date with any new developments in the case, which could affect your decision to participate.

About Levi & Korsinsky, LLP

Levi & Korsinsky, LLP is a well-established law firm with a strong track record in securities class actions and shareholder derivative suits. The firm has represented investors in high-profile cases against large corporations, ensuring that those affected by corporate fraud have the opportunity to seek justice.

For further information or to discuss potential participation in this class action, investors can contact Levi & Korsinsky at:

Joseph E. Levi, Esq.
Email: [email protected]
Phone: (212) 363-7500

Conclusion

The class action lawsuit against Applied Therapeutics represents a critical opportunity for investors who believe they have suffered losses due to alleged securities fraud. As the deadline for lead plaintiff applications approaches, it is important for investors to act quickly. Levi & Korsinsky is providing an avenue for affected parties to seek justice and compensation.

For more information on securities fraud class actions and deadlines, investors may also refer to resources from the U.S. Securities and Exchange Commission or visit Levi & Korsinsky’s official website.

This article has been carefully fact-checked by our editorial team to ensure accuracy and eliminate any misleading information. We are committed to maintaining the highest standards of integrity in our content.