The lawsuit, filed by Robbins LLP, targets losses sustained by those who purchased Aardvark stock during the company's February 2025 initial public offering or throughout the subsequent period ending May 14, 2026. Plaintiffs claim the company overstated the potential of ARD-101, a drug intended to treat hyperphagia in Prader-Willi Syndrome patients, while failing to disclose critical safety risks.

Market confidence in the company collapsed in early 2026 after Aardvark voluntarily paused its Phase 3 HERO trial, citing "reversible cardiac observations" detected in healthy volunteers. The stock plummeted 56.2% on the news. Further volatility followed in May 2026 when the U.S. Food and Drug Administration imposed a full clinical hold on the drug’s investigational application. Shares dropped an additional 32.1% following the regulatory intervention. Robbins LLP maintains that the company's failure to provide transparent data regarding these risks constitutes a violation of federal securities laws.