The legal action, filed by Levi & Korsinsky, LLP, covers investors who acquired Aardvark securities between February 13, 2025, and May 14, 2026. The company’s market value plummeted after it disclosed a voluntary pause of its Phase 3 HERO trial in late February 2026, citing unexpected cardiac observations. This was followed by a full FDA clinical hold on the drug’s investigational new drug application in May.

At the heart of the litigation are claims that Aardvark Therapeutics misrepresented ARD-101 as being "99% gut-restricted" with minimal systemic exposure. Plaintiffs contend these statements were materially false, masking potential risks that only surfaced during safety monitoring. Aardvark shares, which debuted at $16.00 during the company's February 2025 IPO, closed at $4.57 on May 15, 2026, marking a cumulative decline of $11.43 per share. Investors have until October 13, 2026, to apply for lead plaintiff status in the Southern District of California.