The litigation, spearheaded by Faruqi & Faruqi, LLP, centers on allegations that Aardvark’s initial public offering documents and subsequent public statements contained material misrepresentations. Plaintiffs contend that the company failed to disclose that ARD-101 was less safe than represented, which ultimately led to inflated expectations regarding its regulatory and commercial viability.

Signs of trouble surfaced in February 2026 when Aardvark voluntarily paused its Phase 3 HERO trial, citing cardiac observations in healthy volunteers. The disclosure triggered a 56.2% drop in the company’s stock price. The situation worsened in May 2026, when the U.S. Food and Drug Administration imposed a full clinical hold on the company's investigational new drug application for ARD-101. Shares fell an additional 32.1% following the announcement. Investors seeking to participate in the class action or discuss their legal rights may contact partner Josh Wilson at 877-247-4292.