A securities class action alleges former Chief Operating Officer Bryan Jones, Ph.D. told investors in May 2025 that ARD-101 had a "very, very clean" safety profile, months before cardiac observations allegedly forced a Phase 3 pause and a full FDA clinical hold.
NEW YORK, Aug. 19, 2026 /PRNewswire/ -- Levi & Korsinsky, LLP notifies investors in Aardvark Therapeutics, Inc. (NASDAQ: AARD) that Bryan Jones, Ph.D., the Company's former Chief Operating Officer, is named as a defendant in a securities class action brought on behalf of purchasers of AARD securities between February 13, 2025 and May 14, 2026. Find out if you may be eligible to recover losses. You may also contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com or (212) 363-7500.
AARD shares were sold to the public at $16.00 per share in the February 2025 IPO, raising $87,613,440. The stock closed at $4.57 on May 15, 2026, a decline of $11.43 per share, or roughly 71.4%, from the offering price. LEAD PLAINTIFF DEADLINE: October 13, 2026.
Jones's Role During the Class Period
Jones served as Chief Operating Officer from before the Class Period began until February 9, 2026, when the Chief Financial Officer assumed the operating role. During that period, he represented Aardvark at investor conferences and discussed ARD-101's safety data directly with the market, the complaint identifies.
Jones's Alleged Role
At the H.C. Wainwright BioConnect Investor Conference on May 20, 2025, he stated ARD-101 showed a "[v]ery, very clean [safety] profile" with "essentially no adverse events in phase I."
He told the same audience that "[t]he chance of side effects is very, very low because you're not getting exposure to other tissues," citing 99% gut restriction and less than 1% bloodstream exposure.
He described the Phase 3 HERO trial as "potentially a single pivotal study" that had been "discussed" with the FDA.
On February 27, 2026, Aardvark announced a voluntary pause of the HERO trial due to "reversible cardiac observations at above target therapeutic doses," and shares fell $7.02, or 56.2%, to close at $5.47.
On May 14, 2026, the FDA placed a full clinical hold on the ARD-101 IND, covering both Phase 3 trials, and shares fell an additional $2.16, or 32.1%.
The lawsuit contends ARD-101 was less safe than investors were led to believe and that its clinical, regulatory, and commercial prospects were overstated as a result.
Section 20(a) Context for Jones
The action asserts claims under Sections 10(b) and 20(a) of the Exchange Act, as well as Sections 11 and 15 of the Securities Act, against Aardvark and named officers and directors.
"Officers who speak to investors about a lead drug's safety profile bear responsibility for the accuracy of those statements, and this complaint alleges cardiac risks surfaced after investors were told systemic exposure was minimal,"Â -- Joseph E. Levi, Esq.
Levi & Korsinsky, LLP — Top 50 securities litigation firm (ISS, seven consecutive years). Over 70 professionals. Hundreds of millions recovered.
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 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 claims that the drug was approximately 99% gut-restricted with limited systemic absorption and no serious adverse events, during the Class Period. When the voluntary Phase 3 HERO pause for cardiac observations and the FDA's full 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 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.
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Keep it Clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
PLEASE TURN OFF YOUR CAPS LOCK.
Don't Threaten. Threats of harming another person will not be tolerated.
Be Truthful. Don't knowingly lie about anyone or anything.
Be Nice. No racism, sexism or any sort of -ism that is degrading to another person.
Be Proactive. Use the 'Report' link on each comment to let us know of abusive posts.
Share with Us. We'd love to hear eyewitness accounts, the history behind an article.