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

Investors may contact Lewis Kahn, Esq. at Kahn Swick & Foti, LLC to discuss legal options following FDA approval issues.

Mar. 14, 2026 at 4:20am

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Corcept Therapeutics Incorporated is facing a securities fraud class action lawsuit after its stock price plummeted 50% on news that the FDA had issued a Complete Response Letter regarding the New Drug Application for one of the company's lead product candidates, relacorilant. The lawsuit alleges Corcept failed to disclose material information about the likelihood of FDA approval during the class period.

Why it matters

This case highlights the risks investors face when companies fail to fully disclose information that could impact the approval and commercialization of their drug candidates. The significant stock decline shows the financial impact these issues can have, underscoring the importance of transparency from publicly traded pharmaceutical firms.

The details

The lawsuit alleges that during the class period from October 2024 to December 2025, 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, concluding it could not arrive at a favorable benefit-risk assessment for the drug without additional evidence of effectiveness from the company.

  • The class period runs from October 31, 2024 to December 30, 2025.
  • Investors have until April 21, 2026 to file lead plaintiff applications in the lawsuit.
  • Corcept's stock price plunged 50.4% on December 31, 2025 after the FDA news.

The players

Corcept Therapeutics Incorporated

A biopharmaceutical company focused on developing and commercializing drugs for disorders associated with excessive cortisol activity.

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.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This case highlights the importance of transparency from pharmaceutical companies regarding the status of their drug development pipelines, as investors rely on accurate information to make informed decisions. The significant stock decline underscores the financial risks when companies fail to fully disclose material information.