Corcept Therapeutics Inc. (CORT) is defending against a securities class action lawsuit alleging the company made misleading statements to investors regarding its lead drug candidate relacorilant. According to the complaint, Corcept characterized the drug as having "powerful evidence" and being "approaching approval," despite the FDA having privately communicated concerns about insufficient clinical data supporting the application.
The regulatory setback materialized on December 31, 2025, when the FDA issued a Complete Response Letter denying approval for relacorilant. The rejection triggered a sharp market correction, with Corcept shares declining approximately 50% from $70.20 to $34.80 in the subsequent trading period. The stock decline resulted in an estimated $3.6 billion reduction in the company's market capitalization, according to available data.
Investors who purchased Corcept securities during the relevant period have until April 21, 2026, to submit a lead plaintiff application in the case. The litigation underscores ongoing regulatory scrutiny of pharmaceutical companies' communications regarding drug development progress and FDA interactions. Corcept has not yet publicly commented on the allegations.