Multiple law firms have filed a class-action lawsuit against Aldeyra Therapeutics, Inc. (NASDAQ: ALDX) after the company’s stock price collapsed over 70 percent following the regulatory rejection of its lead drug candidate.
The lawsuit, filed on behalf of investors, alleges that Aldeyra and its executives made false and misleading statements about the efficacy of its dry eye disease drug, reproxalap. "The Complaint alleges that Defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that the results of the reproxalap clinical trials were inconsistent," law firm Bronstein, Gewirtz & Grossman said in a statement.
The class period covers investors who acquired Aldeyra securities between November 3, 2023, and March 16, 2026. The legal action follows a steep decline in the company's valuation after it disclosed negative news from the U.S. Food and Drug Administration. On March 17, 2026, Aldeyra’s stock price fell $2.99 per share, or 70.7 percent, to close at $1.24 after the company announced it had received a Complete Response Letter from the FDA for reproxalap.
The lawsuit contends that the company failed to disclose the inconsistent nature of its clinical trial data, which ultimately led to the FDA’s rejection. The regulator cited insufficient evidence of efficacy and noted that the overall data did not demonstrate the product's effectiveness for treating dry eye disease. The news prompted a downgrade from H.C. Wainwright, which cut its price target on the stock to $2 from $10.
The decline puts the stock at its lowest level since its 2014 initial public offering, wiping out hundreds of millions in market capitalization. Investors who wish to serve as lead plaintiff in the class action have until May 29, 2026, to file a motion with the court.
This article is for informational purposes only and does not constitute investment advice.
