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Shareholders who purchased or otherwise acquired Applied Therapeutics Inc. common stock between Jan. 3, 2024, and Dec. 2, 2024, may be eligible to claim a cash payment and warrant proceeds from a class action settlement.
Applied Therapeutics agreed to provide $15,000,000 in cash and warrants to purchase up to 1 million shares of its common stock to settle a class action lawsuit alleging it and certain executives made false or misleading statements and omissions regarding the company’s new drug application for govorestat. The lawsuit claimed these actions inflated Applied Therapeutics’ stock price and caused investor losses when corrective information reached the market.
Who can file a claim?
Class members must meet the following criteria:
- They purchased or otherwise acquired Applied Therapeutics common stock (ticker: APLT) on a U.S.-based exchange between Jan. 3, 2024, and Dec. 2, 2024, inclusive.
Additional information
- Both individuals and entities can be class members.
- Financial institutions, nominees or other custodians who purchased Applied Therapeutics common stock on behalf of beneficial owners must either forward the notice to those investors or provide the claims administrator with the beneficial owners’ names and addresses within seven days of receiving the postcard notice.
How much is the Applied Therapeutics securities payout?
The total settlement fund is $15,000,000 plus warrant proceeds. Each class member’s payment depends on several factors:
- The total number of valid claims filed
- The number of Applied Therapeutics common shares the member purchased, sold or held
- The timing and prices of those transactions during the class period
- The total recognized losses of all claimants
Additional information
- The estimated average recovery before deductions for court-approved fees and expenses is approximately $0.15 per allegedly damaged share of Applied Therapeutics common stock.
- The settlement administrator will calculate each claimant’s award using formulas in the plan of allocation:
- Shares purchased during the class period and sold before Nov. 29, 2024, have a recognized loss of $0.
- Shares sold on Nov. 29 or Dec. 2, 2024, have a recognized loss equal to the lesser of $6.82, the purchase price minus the sale price or the purchase price minus $1.75.
- Shares sold on Dec. 3, 2024, have a recognized loss equal to the lesser of $6.88, the purchase price minus the sale price or the purchase price minus $1.69.
- Shares held through the close of trading on Dec. 3, 2024, have a recognized loss equal to the lesser of $6.88 or the purchase price minus $1.69.
- The plan defines these recognized losses by how long investors held shares during periods of alleged artificial inflation.
- The settlement administrator will reduce all payments on a pro rata basis if the total recognized losses exceed the fund.
- Claimants with a calculated payment of less than $10 or less than the equivalent of 10 shares of Applied Therapeutics common stock received as warrant proceeds will not receive a payout.
- The settlement administrator will offset claimants' recognized losses by gains on shares both purchased and sold from Nov. 29, 2024, through Dec. 3, 2024.
How to claim an Applied Therapeutics class action settlement payment
Class members can file a claim online or download, print and complete the PDF claim form and mail it to the settlement administrator.
Settlement administrator's mailing address: Applied Therapeutics Securities Settlement, c/o Claims Administrator, 1650 Arch St., Suite 2210, Philadelphia, PA 19103
Proof or documentation required to submit a claim
All class members must provide the last four digits of their Social Security number or their full taxpayer identification number. They must also provide purchase, acquisition and sale information, including:
- Trade dates
- Number of shares purchased, acquired or sold
- Total purchase, sale or acquisition price
Claimants must include documentation to support their transactions in Applied Therapeutics common stock. Acceptable forms of proof include:
- Broker confirmation slips
- Broker account statements
- Authorized statements from a broker containing the same transactional details found in a confirmation slip
- Other documentation the claims administrator deems adequate
$15 million settlement fund
The $15,000,000 settlement fund includes:
- Notice and administration costs: To be determined
- Attorneys’ fees: Up to $3,000,000
- Attorneys’ expenses: Up to $50,000
- Payments to eligible class members: The remainder of the fund plus any warrant proceeds
Important dates
- Opt-out deadline: Feb. 26, 2026
- Fairness hearing: March 19, 2026
- Deadline to file a claim: April 8, 2026
When is the Applied Therapeutics securities litigation payout date?
The settlement administrator will distribute payments after the court grants final approval of the settlement and resolves any appeals.
Why did this class action settlement happen?
The class action lawsuit alleged that Applied Therapeutics Inc. and certain executives made materially false and misleading statements about the viability of its new drug application for govorestat, interactions with the FDA and the reliability of underlying data. The lawsuit claimed these misrepresentations caused the stock price to be artificially inflated until corrective disclosures in late 2024 led to a sharp decline.
The parties agreed to settle to avoid the risks, costs and delays of further litigation and to provide compensation to investors.
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