Grabar Law Office is investigating claims on behalf of Aardvark Therapeutics, Inc. (NASDAQ: AARD) shareholders who purchased shares in or shortly after the Company’s February 13, 2025, initial public offering and have continued to hold their shares.

The investigation follows the filing of a securities class action against Aardvark and certain of its officers and directors alleging violations of the federal securities laws in connection with statements concerning the safety and prospects of the Company’s lead drug candidate, ARD-101.

Aardvark is a clinical-stage biopharmaceutical company developing small-molecule therapies for metabolic conditions. Its lead product candidate, ARD-101, is being developed to treat hyperphagia associated with Prader-Willi Syndrome through the Company’s Phase 3 HERO clinical trial.

Allegations Concerning Aardvark’s IPO and ARD-101

Aardvark completed its IPO on or about February 13, 2025, when its common stock began trading on the Nasdaq under the ticker AARD. The Company sold approximately 5.9 million shares at $16.00 per share, generating approximately $87.6 million in net proceeds after underwriting discounts and commissions.

According to the recently filed securities complaint, Aardvark’s offering documents represented that ARD-101 had been “well-tolerated” in earlier clinical trials, had limited systemic absorption, and had demonstrated no serious adverse events. The complaint alleges that the offering documents were materially false or misleading because they failed to disclose that ARD-101 was allegedly less safe than investors had been led to believe and that its clinical, regulatory, and commercial prospects were therefore overstated.

The complaint further alleges that similar representations concerning ARD-101’s safety continued after the IPO. For example, Company representatives subsequently described ARD-101 as having a “very, very clean” safety profile and represented that its limited systemic exposure reduced the likelihood of side effects.

Subsequent Developments

On February 27, 2026, Aardvark announced that it was voluntarily pausing enrollment and dosing in the Phase 3 HERO trial after identifying reversible cardiac observations during safety monitoring in a healthy-volunteer study. Following the announcement, Aardvark’s stock price allegedly declined approximately 56%, closing at $5.47 per share on March 2, 2026.

Then, on May 14, 2026, Aardvark announced that the FDA had placed a full clinical hold on the investigational new drug application for ARD-101, including the Phase 3 HERO trial and its open-label extension. According to the complaint, Aardvark’s stock declined another 32.1% the following day, closing at $4.57 per share.

Grabar Law Office’s Shareholder Governance Investigation

Grabar Law Office is investigating whether certain Aardvark officers and directors may have breached their fiduciary duties to the Company or otherwise failed to adequately oversee Aardvark’s operations, public disclosures, clinical-development risks, and corporate governance.

Among other things, the investigation concerns whether the Company and its shareholders were harmed by:

• allegedly misleading disclosures concerning ARD-101’s safety profile and prospects;
• inadequate oversight of clinical and regulatory risks associated with ARD-101;
• failures involving the accuracy and completeness of statements made in connection with the IPO and thereafter;
• resulting securities litigation and related costs to the Company; and
• other potential breaches of fiduciary duty or corporate-governance failures.

The pending securities class action seeks damages on behalf of investors. A shareholder derivative action is different: derivative claims generally seek recovery and other relief on behalf of Aardvark itself, which can include monetary recovery for the Company and improvements to corporate governance and oversight.

If you purchased Aardvark shares at or shortly after the IPO and continue to own those shares, you may have important rights concerning the Company’s management and Board of Directors. You can seek corporate reforms, the return of funds back to the company, and a court approved incentive award at no cost to you whatsoever through a shareholder governance action.  You are encouraged to contact Joshua Grabar at jgrabar@grabarlaw.com, or call 267-507-6085 to learn more.

To learn more about Grabar Law Office’s Aardvark shareholder investigation and your potential rights, please contact the Firm. There is no cost or obligation to speak with us.