Corcept Plunges 50.4% Sparking Investor Lawsuits

Edgen Stock

·Mar 30 2026, 08:21

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Key Takeaways

Corcept Therapeutics is the target of multiple class-action lawsuits alleging securities fraud. The suits claim the company misled investors about the approval prospects for its key drug candidate, relacorilant, leading to a major stock price collapse after the FDA rejected its application.

Stock Collapse: Corcept's stock (CORT) fell 50.4%, or $35.40 per share, on December 31, 2025, after the company announced the FDA had rejected its new drug application.
Misleading Statements: Lawsuits allege Corcept's management knew the FDA had concerns about relacorilant's clinical data as early as 2024 but continued to publicly project a positive outlook on its approval.
Legal Action: Investors who purchased CORT stock between October 31, 2024, and December 30, 2025, are now part of a class-action lawsuit seeking to recover significant losses.

Stock Collapses 50.4% After FDA Rejects Key Drug

On December 31, 2025, Corcept Therapeutics (NASDAQ: CORT) announced it had received a Complete Response Letter from the U.S. Food and Drug Administration for its New Drug Application (NDA) for relacorilant, a proposed treatment for Cushing’s syndrome. The FDA stated it could not approve the drug, concluding it lacked sufficient evidence of effectiveness to support a favorable benefit-risk assessment. The market’s reaction was immediate and severe. Corcept's stock plummeted 50.4% in a single day, collapsing from a closing price of $70.20 on December 30, 2025, to $34.80. This drop erased nearly $2.5 billion in shareholder value.

Lawsuits Allege Management Concealed FDA Warnings Since 2024

The catastrophic stock decline prompted a wave of securities class-action lawsuits from law firms including Hagens Berman and Kaplan Fox. The suits allege that Corcept's management made materially false and misleading statements to investors throughout the class period, which runs from October 31, 2024, to December 30, 2025. The core allegation is that the company concealed critical information from shareholders. According to the complaints, the FDA had warned Corcept on multiple occasions during 2024 and early 2025 that its clinical data for relacorilant was insufficient to support an NDA. Despite these private warnings, the company allegedly continued to publicly tout the drug's prospects, creating a significant information gap that left investors exposed. The deadline for affected shareholders to file for lead plaintiff status is April 21, 2026.