SAN FRANCISCO, June 25, 2026 /PRNewswire/ -- On March 2, 2026, investors in Aardvark Therapeutics (NASDAQ: AARD) saw the price of their shares crater $7.02 (-56%) after the company announced that it stopped its Phase 3 Hunger Elimination of Reduction Objective ("HERO") trial evaluating the efficacy and safety of ARD-101 as a treatment for hyperphagia (insatiable hunger) in patients with Prader-Willi Syndrome ("PWS").
The development and severe market reaction have prompted national shareholder rights firm Hagens Berman to open an investigation into whether Aardvark may have misled investors in violation of federal securities laws. The firm encourages Aardvark investors who suffered substantial losses to submit your losses now.
The firm also encourages persons with knowledge who may be able to assist the investigation to contact its attorneys.
The investigation is focused on the propriety of Aardvark's disclosures about ARD-101 safety and efficacy data, along with disclosures regarding communications with the FDA.
In the past, Aardvark has emphasized that ARD-101 represented a "first-in-class" drug and that, "through alignment with the FDA," it started HERO patients 13 years and older, moved to dosing patients 10 years and older, and intended to dose patients as young as 4 years old.
The company has also assured investors that ARD-101 has "a very tolerable safety profile."
Investors' expectations were dashed on March 2, 2026. That day, Aardvark abruptly announced that it was pausing the HERO trial. The company said its decision was based on a serious safety risk – namely, "reversible cardiac observations[.]" Aardvark also said that it no longer anticipates announcing topline data from the HERO trial during the third quarter of 2026.
The market swiftly reacted, sending the price of Aardvark shares down by over half and, with the emergence of cardiac safety signals, reportedly prompting several analysts to sharply reduce or suspend their price targets.
"We're focused on whether Aardvark may have misled investors about ARD-101's development, its safety and/or efficacy, and the company's communications with the FDA," said Reed Kathrein, the Hagens Berman partner leading the firm's investigation.
If you invested in Aardvark Therapeutics and have substantial losses, or have knowledge that will assist the firm's investigation, submit your losses now.
If you'd like more information and answers to frequently asked questions about the firm's Aardvark investigation, read more »
Whistleblowers: Persons with non-public information regarding Aardvark Therapeutics should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email AARD@hbsslaw.com.
Hagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman's team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
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