AARD Shareholder Alert: Investors With Losses May Seek to Lead the Class Action in Aardvark Therapeutics Securities Lawsuit - Contact SueWallSt

On March 2, 2026, Morgan Stanley Research cut its price target on AARD from $29 to $7, a reduction of approximately 75.9%, and downgraded the stock from Overweight to Equal-weight. Shares closed at $5.47 that day, down $7.02 per share, or 56.2%. The deadline to apply for lead plaintiff appointment is October 13, 2026.

Initial Analyst Optimism

Coverage indicated that sell-side models were built on the Company's representation that ARD-101 was an oral, "gut-restricted" therapy with roughly 99% of the drug remaining in the digestive tract. The complaint contends those safety representations were materially misleading and that ARD-101's clinical, regulatory, and commercial prospects were overstated.

The Downgrades Begin

Analysts noted that Aardvark's February 27, 2026 announcement of a voluntary pause of the Phase 3 HERO trial, attributed to "reversible cardiac observations at above target therapeutic doses," changed the outlook. Morgan Stanley cited "uncertainty around the path forward for ARD-101." BTIG called the loss of third-quarter 2026 topline data "a major setback, leading to concerns around time to resolution vs. cash runway."

Analyst Coverage Timeline

• February 27, 2026: Company discloses voluntary pause of the Phase 3 HERO trial and withdraws expected 3Q26 topline data.
• March 2, 2026: Morgan Stanley downgrades to Equal-weight; price target cut from $29 to $7 (approximately 75.9%).
• March 2, 2026: BTIG lowers its target from $26 to $9 (approximately 65.4%), citing "increased risk around the HERO trial."
• March 2, 2026: Bank of America Securities trims its target from $25 to $21 (approximately 16%).
• May 14, 2026: Company announces the FDA placed a full clinical hold on the ARD-101 IND, covering the HERO trial and the open-label extension.
• May 15, 2026: Shares close at $4.57, down $2.16, or 32.1%, and below the $16.00 IPO price.

Why Analyst Shifts Matter for Investors

"When analyst expectations are built on incomplete or misleading company disclosures, the resulting corrections can cause significant investor harm. Here, published price targets fell from $29 to $7 within days of the disclosed trial pause." -- Joseph E. Levi, Esq.

Learn more about the case or call (888) SueWallSt.

WHY SUEWALLST: SueWallSt is powered by Levi & Korsinsky LLP. 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 32.1%, a decline of $2.16 per share, after the Company disclosed that the FDA placed a full clinical hold on the ARD-101 investigational new drug application. This followed an earlier decline of $7.02 per share, or 56.2%, after the announced pause of the Phase 3 HERO trial. Investors who purchased shares during the Class Period at artificially inflated prices and suffered losses may be eligible to seek compensation.

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: Who are the defendants named in the AARD lawsuit? A: The complaint names Aardvark Therapeutics, Inc. and individual defendants including senior executives and directors who signed SEC filings, made public statements, or certified corporate disclosures.

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: How long will the lawsuit take to resolve? A: Securities class actions typically take two to four years from initial filing to resolution. Timing depends on the court schedule, case developments, and whether the matter is dismissed, settled, or litigated further.

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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