Robbins LLP is Investigating Allegations that Ardelyx, Inc. (ARDX) Misled Investors Regarding its Business Prospects

Robbins LLP informs investors that a shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired Ardelyx, Inc. (NASDAQ: ARDX) securities between October 31, 2023 and July 1, 2024.  Ardelyx is a biotechnology company focused on developing and commercializing therapies for, among other things, patients with chronic kidney disease (“CKD”).

The Allegations

According to the complaint, during the class period, 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 (its drug that reduces elevated levels of phosphorus in the bloodstream in CKD patients on dialysis who either cannot tolerate or did not adequately respond to other therapies) in TDAPA. Further, on an earnings call on May 2, 2024, defendant Michael Raab advised analysts that "our intent is to enter TDAPA."

However, defendants failed to disclose that in reality, Ardelyx had not yet reached a firm decision concerning whether or not to apply to include XPHOZAH in TDAPA, and could not, in fact, decide whether or not to submit such an application to CMS until after defendants first reviewed CMS’s proposed Calendar Year 2025 ESRD PPS rule, which was only issued on June 27, 2024.

On July 2, 2024, Ardelyx issued a press release announcing that it had chosen not to apply to include XPHOZAH in TDAPA. This sudden change in strategy for XPHOZAH shocked the market, and 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.

What Now: You may be eligible to participate in the class action against Ardelyx, Inc. Shareholders who want to serve as lead plaintiff for the class must file their papers with the court by October 15, 2024. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation.  You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member.

All representation is on a contingency fee basis. Shareholders pay no fees or expenses.