Faruqi & Faruqi Opens Probe Into Tvardi (TVRD); Investors Urged to Contact Counsel After Firm’s Notice

Law firm launches investigation — investors encouraged to reach out immediately

On Dec. 11, 2025, the law firm Faruqi & Faruqi, LLP announced an investigation into Tvardi Therapeutics (TVRD) and urged affected investors to contact the firm promptly. The notice says the firm is looking into possible claims on behalf of shareholders and option holders who bought, sold, or otherwise traded TVRD securities around key company disclosures.

The immediate call to action in the release was plain: any investor who believes they suffered losses tied to Tvardi’s public statements, filings, or other disclosures should reach out to Faruqi & Faruqi to discuss potential representation. The firm’s statement did not set a public filing date or claim deadline in the announcement, so investors are advised to take the contact notice seriously and preserve records of their trades now.

What the notice says the investigation targets

Faruqi & Faruqi’s announcement frames the probe as an inquiry into whether Tvardi made material misstatements or omissions in its public communications. That description typically covers claims that the company failed to disclose important information or that earlier statements were misleading in light of later facts.

The firm’s notice does not allege proven facts. Instead, it says there may be grounds for claims tied to disclosures — for example, clinical results, regulatory matters, partnerships, or financial reporting — and that it will investigate whether shareholders were harmed by those disclosures. Put plainly, the firm is asking whether something the company said (or failed to say) led investors to make decisions that later turned out to be costly.

Tvardi at a glance: what the company does and the context investors should watch

Tvardi Therapeutics (TVRD) is a small, clinical-stage biotechnology company. Like many firms at this stage, its value depends heavily on clinical data, regulatory milestones, partnerships, and how management reports progress. Those kinds of events can sway the stock sharply, and they are often the focus when securities law firms open investigations.

The firm’s release pointed to recent company disclosures but did not list specific filings or dates. At this stage, clear, confirmable points of reference — such as an 8-K, 10-Q, or an FDA communication — are not specified in the notice. That leaves open which exact statements or filings the law firm sees as potentially problematic.

Investors should also note that news of an investigation can itself move a small, thinly traded stock. An inquiry can increase volatility and reduce liquidity while it is unresolved, especially for a company whose market value is driven by a narrow set of clinical or regulatory milestones.

Who might qualify to participate and what kinds of claims are typical

The notice says the firm represents investors who bought, sold, or held Tvardi securities during periods the firm will specify. That usually covers common stock purchases and sometimes option trades that occurred around the company’s contested disclosures.

Typical claims in this sort of action include alleged securities fraud, negligent misrepresentation, or omissions of material facts. Cases may be brought as class actions — which combine many investors’ claims into one case — or as individual suits. Whether someone qualifies for inclusion depends on detailed timing, the specific security traded, and the legal theory the firm ultimately pursues.

Practical next steps for shareholders and option holders

The announcement’s basic, practical advice is what you would expect: preserve your trade records and act quickly. Keep transaction confirmations, brokerage statements, option exercise notices, and any emails or company notices you received about TVRD. Note the dates and prices of trades and the source of any company statements you relied on.

The firm’s release asks investors to contact Faruqi & Faruqi to discuss potential claims. The announcement typically includes phone and email contact options; the firm may also provide a short form for initial intake. Because the notice did not publish a specific litigation timetable, it’s reasonable for affected investors to reach out now if they believe they may be covered.

How this could play out and what investors should expect

When a securities firm opens an investigation, several paths are possible. The firm may gather evidence and then file a lawsuit. Alternatively, the parties might negotiate a settlement without a prolonged trial. Either way, the legal process can take months or years, and outcomes range widely from dismissal to multi-million-dollar settlements.

For shareholders, an active investigation is a risk factor. It can keep downward pressure on the stock while uncertainty persists and could affect the company’s ability to raise money or strike deals. But an investigation alone is not proof of wrongdoing, and because the firm’s notice provides limited detail, the ultimate impact will hinge on what the investigation uncovers.

Bottom line: this notice is a clear red flag that adds legal risk to Tvardi’s profile. Investors should treat it as a material development that may influence trading risk and liquidity until the matter is clarified or resolved.