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Corcept Therapeutics Faces Securities Fraud Class Action After FDA Approval Issues
Investors may contact Lewis Kahn, Esq. at Kahn Swick & Foti, LLC for more information
Feb. 25, 2026 at 2:48am
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Corcept Therapeutics Incorporated (NasdaqCM: CORT) is facing a securities fraud class action lawsuit after the company disclosed that the FDA had issued a Complete Response Letter regarding the New Drug Application for its lead product candidate, relacorilant, resulting in a 50% stock price decline. The lawsuit alleges that the company failed to disclose material information during the class period from October 2024 to December 2025.
Why it matters
This case highlights the risks pharmaceutical companies face when seeking regulatory approval for new drugs, and the potential legal consequences of failing to properly disclose material information to investors. The significant stock price decline also demonstrates the financial impact such regulatory setbacks can have on a company.
The details
The lawsuit alleges that during the class period, Corcept represented to investors that there was a high likelihood relacorilant would receive FDA approval, but on December 31, 2025, the company disclosed that the FDA had issued a Complete Response Letter and concluded it could not arrive at a favorable benefit-risk assessment for the drug without additional evidence of effectiveness. This news caused Corcept's stock price to plummet 50.4% from $70.20 to $34.80 per share.
- The class period is from October 31, 2024 to December 30, 2025.
- Investors have until April 21, 2026 to file lead plaintiff applications in the lawsuit.
The players
Corcept Therapeutics Incorporated
A biopharmaceutical company that develops and commercializes drugs for the treatment of severe metabolic, oncologic, and psychiatric disorders.
Kahn Swick & Foti, LLC
A boutique securities litigation law firm that is representing investors in the class action lawsuit against Corcept.
Charles C. Foti, Jr.
The former Attorney General of Louisiana and a partner at Kahn Swick & Foti, LLC.
What they’re saying
“If you purchased shares of Corcept and would like to discuss your legal rights and how this case might affect you and your right to recover for your economic loss, you may, without obligation or cost to you, contact KSF Managing Partner Lewis Kahn toll-free at 1-877-515-1850 or via email (lewis.kahn@ksfcounsel.com), or visit https://www.ksfcounsel.com/cases/nasdaqcm-cort/ to learn more.”
— Lewis Kahn, Managing Partner, Kahn Swick & Foti, LLC
What’s next
The judge will decide by April 21, 2026 whether to allow the case to proceed as a class action lawsuit.
The takeaway
This case underscores the importance of pharmaceutical companies fully disclosing material information to investors, especially regarding the regulatory approval process for new drug candidates. Investors will be closely watching the outcome of this lawsuit and its potential impact on Corcept's future.
