Corcept Therapeutics Hit with Securities Fraud Lawsuit After 50% Stock Plunge

Investors have until April 21, 2026 to file lead plaintiff applications in the class action lawsuit.

Mar. 14, 2026 at 2:19am

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Kahn Swick & Foti, LLC (KSF) and former Louisiana Attorney General Charles C. Foti, Jr. are reminding investors who purchased Corcept Therapeutics Incorporated (NasdaqCM: CORT) shares between October 31, 2024 and December 30, 2025 that they have until April 21, 2026 to file lead plaintiff applications in a securities class action lawsuit against the company. The lawsuit alleges that Corcept misled investors about the likelihood of its new drug candidate, relacorilant, receiving FDA approval, leading to a 50% stock price drop when the FDA issued a Complete Response Letter denying approval.

Why it matters

This case highlights the risks investors face when companies provide overly optimistic projections about the regulatory approval prospects for their drug candidates. The significant stock price decline caused substantial losses for Corcept shareholders, prompting this class action lawsuit alleging securities fraud. The outcome of this case could impact how pharmaceutical companies communicate with investors about their drug development pipelines going forward.

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 after the company submitted its New Drug Application. However, on December 31, 2025, Corcept disclosed that the FDA had issued a Complete Response Letter regarding the NDA for relacorilant, concluding it could not arrive at a favorable benefit-risk assessment without Corcept providing additional evidence of effectiveness. This news caused Corcept's stock price to plummet 50.4% in a single day.

  • Corcept submitted its New Drug Application for relacorilant prior to the class period.
  • The class period runs from October 31, 2024 to December 30, 2025.
  • On December 31, 2025, Corcept disclosed the FDA's Complete Response Letter denying approval of relacorilant.

The players

Corcept Therapeutics Incorporated

A biopharmaceutical company focused on developing 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.

A partner at Kahn Swick & Foti, LLC and the former Attorney General of Louisiana.

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What they’re saying

“We must hold Corcept accountable for misleading investors about the prospects of its drug candidate receiving FDA approval.”

— Charles C. Foti, Jr., Partner, Kahn Swick & Foti, LLC

What’s next

Investors have until April 21, 2026 to file lead plaintiff applications in the class action lawsuit against Corcept Therapeutics.

The takeaway

This case underscores the importance of pharmaceutical companies providing investors with accurate and transparent information about their drug development pipelines, as overly optimistic projections can lead to significant losses when regulatory setbacks occur.