Corcept Faces Class-Action Lawsuit After 50% Stock Crash Over FDA Rejection
Corcept Therapeutics is facing a securities fraud class-action lawsuit after its stock collapsed by over 50% in a single day. The sharp decline followed the FDA's rejection of Relacorilant, an experimental drug at the centre of investor concerns. Shareholders now have until April 21, 2026, to apply as lead plaintiffs in the case.
The lawsuit, filed under case number 26-cv-01525, accuses Corcept of failing to properly disclose risks tied to Relacorilant's regulatory approval process. Investors claim the company did not communicate the FDA's concerns about the drug's prospects, covering the period from October 31, 2024, to December 30, 2025.
On December 31, 2025, the FDA rejected Relacorilant, citing insufficient evidence of its effectiveness. The agency requested further analyses of existing data from the ROSELLA Phase 3 trial, including subgroup breakdowns and a closer look at progression-free survival metrics. No new clinical trials were demanded, but the company was given until early 2026 to respond.
The rejection triggered an immediate stock crash, with Corcept's shares plunging by $35.40—a 50.4% loss in a single trading session. Investors now have until April 21, 2026, to join the lawsuit. After this deadline, the court will decide who leads the case and proceed with assessing the allegations.
The lawsuit centres on claims that Corcept misled investors by withholding key information about Relacorilant's approval risks. With the stock price halved and legal proceedings underway, the court's next steps will determine how the case progresses. The deadline for lead plaintiff applications remains April 21, 2026.
