NEW YORK--(BUSINESS WIRE)--Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Ardelyx, Inc. (“Ardelyx” or the “Company”) (NASDAQ: ARDX) and reminds investors of the October 15, 2024 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.
As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that Defendants had actual knowledge of the misleading nature of the statements they made or acted in reckless disregard of the true information known to them at the time. In particular, during the Class Period, Defendants intentionally or recklessly indicated that Ardelyx would apply to include XPHOZAH in TDAPA when, in fact, Defendants knew or recklessly disregarded that Ardelyx had not yet reached a firm decision concerning whether or not to 19 to apply to include XPHOZAH in TDAPA, and could in fact decide not to submit such an application to CMS, which would materially affect sales of XPHOZAH. Further, Defendants had both the motive and opportunity to commit fraud. Specifically, during the Class Period, while disseminating the materially false and misleading statements alleged herein to maintain artificially inflated prices for Ardelyx securities, the Individual Defendants enriched themselves by millions of dollars by engaging in insider sales of the Company’s common stock while it traded at artificially high prices, with Defendant Raab selling 152,597 shares of Ardelyx common stock for total proceeds of over $1 million and Defendant Renz selling 238,381 shares of Ardelyx common stock for total proceeds of over $1.5 million.
The Complaint alleges that, in its Forms 10-Q filed on October 31, 2023, and May 2, 2024, and in its Form 10-K filed on February 22, 2024, Ardelyx indicated that it would apply to include XPHOZAH in TDAPA. Further, on an earnings call on May 2, 2024, Defendant Michael Raab advised analysts that "our intent is to enter TDAPA." But then on July 2, 2024, Ardelyx shocked investors by disclosing that it had decided not to apply to include XPHOZAH in TDAPA.
Upon the above news, Ardelyx's stock price fell $2.29 per share, or 30.25%, to close at $5.28 per share on July 2, 2024
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Ardelyx’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
To learn more about the Ardelyx class action, go to www.faruqilaw.com/ARDX or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
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