Pension funds, asset managers, and other fiduciaries holding Aardvark Therapeutics, Inc. (NASDAQ: AARD) positions acquired in or after the February 2025 IPO may wish to evaluate lead plaintiff options, as a securities class action alleges the Company misrepresented the safety and tolerability of ARD-101 before a Phase 3 trial pause and a full FDA clinical hold.

Levi & Korsinsky, LLP notifies institutional investors in Aardvark Therapeutics, Inc. (NASDAQ: AARD) that a class action lawsuit has been filed on behalf of shareholders who purchased securities between February 13, 2025 and May 14, 2026. Request an institutional investor loss assessment. You may also contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com or (212) 363-7500.

Shares sold at the $16.00 IPO price now trade near $4.57, a decline of approximately $11.43 per share, or 71.4%. Aardvark issued 5,888,000 shares for proceeds of $87,613,440. To be considered for lead plaintiff, investors must file by October 13, 2026.

Notice to Institutional Holders

The pleading asserts that offering documents and subsequent public statements described ARD-101 as approximately 99% gut-restricted, with limited systemic absorption and no serious adverse events. The complaint charges that these representations understated the candidate's safety risk. On February 27, 2026, the Company announced a voluntary pause of the Phase 3 HERO trial citing reversible cardiac observations above target therapeutic doses; on May 14, 2026, it announced that the FDA had placed a full clinical hold on the ARD-101 IND covering all ongoing studies.

ERISA and Fiduciary Considerations

Funds, advisers, and trustees that acquired AARD shares in or traceable to the IPO may hold among the largest documented losses in the class. As averred in the action, Securities Act claims under Sections 11 and 15 do not require proof of intent, a distinction that can affect how fiduciaries assess a position's claim value.

Fiduciary Obligations and Recovery Options

• Institutional holders with the largest provable losses are typically best positioned for lead plaintiff appointment.
• Serving as lead plaintiff provides direct oversight of counsel, litigation strategy, and settlement decisions.
• Plan fiduciaries may have documentation obligations regarding the monitoring and pursuit of portfolio claims.
• Absent class members retain the ability to participate in any recovery without seeking lead plaintiff status.
• Loss assessments are provided at no cost and without obligation.

"Institutional investors play a critical role in securities class actions, and here the alleged gap between representations of a gut-restricted safety profile and the subsequent full FDA clinical hold on ARD-101 is precisely the kind of issue sophisticated holders are well positioned to evaluate," -- Joseph E. Levi, Esq.

Contact us to learn more about institutional recovery options or call (212) 363-7500.

INSTITUTIONAL INVESTOR REPRESENTATION — Levi & Korsinsky, LLP provides sophisticated counsel to institutional investors evaluating lead plaintiff opportunities. The firm has recovered hundreds of millions of dollars. Ranked among ISS Top 50 for seven consecutive years.

Frequently Asked Questions About the AARD Lawsuit

Q: Who is eligible to join the AARD investor lawsuit? A: Investors who purchased AARD stock or securities between February 13, 2025 and May 14, 2026 and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses -- not on whether you still hold the shares.

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: Who are the defendants named in the AARD lawsuit? A: The complaint names Aardvark Therapeutics, Inc. and individual defendants including senior executives and directors who signed SEC filings, made public statements, or certified financial disclosures.

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 do AARD investors need to do right now? A: Investors may gather brokerage records showing purchase dates, share quantities, and prices paid. Submit your information for a no-cost, no-obligation evaluation of your potential recovery. No immediate action is required to remain eligible as an absent class member.

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.

Q: What if I live outside the United States? A: U.S. securities class actions generally cover purchases on U.S. exchanges regardless of the investor's country of residence.

Attorney Advertising. Prior results do not guarantee similar outcomes.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260820016285/en/