{"id":3551,"date":"2025-05-27T16:13:41","date_gmt":"2025-05-27T16:13:41","guid":{"rendered":"https:\/\/gunowner-news.com\/?p=3551"},"modified":"2025-05-27T16:13:41","modified_gmt":"2025-05-27T16:13:41","slug":"columbia-trustee-sued-for-securities-fraud-left-her-pharma-firm","status":"publish","type":"post","link":"https:\/\/gunowner-news.com\/?p=3551","title":{"rendered":"Columbia Trustee Sued for Securities Fraud, Left Her Pharma Firm"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div>\n<p><span class=\"has-underline\">For more than<\/span> a year and a half, Shoshana Shendelman has been at the epicenter of one of the biggest stories in the country: the raging campus battles over Israel\u2019s war on Gaza. Earlier in the year, Columbia University, an institution deeply entwined with Shendelman\u2019s life, was the site of the first major university protest encampment. And the university cracked down, inviting <a href=\"https:\/\/theintercept.com\/2024\/05\/07\/columbia-protest-gaza-nypd-overtime-cost\/\">police<\/a> onto its New York campus where they <a href=\"https:\/\/theintercept.com\/2024\/04\/22\/gaza-protests-arrests-columbia-law-school\/\">made violent arrests<\/a>.<\/p>\n<p>Shendelman, who got two masters\u2019 degrees and her doctorate from Columbia and whose child currently attends the school, had sat on the board of trustees of the university since March 2023. According to a recent New York Magazine <a href=\"https:\/\/nymag.com\/intelligencer\/article\/columbia-university-president-trump-board-of-trustees-students-protests.html\">story<\/a>, Shendelman was one of the most active board members in the pro-Israel camp pushing for action to restore order on campus. The university meted out <a href=\"https:\/\/theintercept.com\/2024\/04\/15\/columbia-pomona-vanderbilt-gaza-student-protests-arrests\/\">harsh punishments<\/a> for student protesters, short circuited <a href=\"https:\/\/theintercept.com\/2024\/08\/29\/columbia-campus-protests-gaza-subpoena\/\">due process<\/a>, and, critics say, <a href=\"https:\/\/theintercept.com\/2024\/04\/15\/columbia-pomona-vanderbilt-gaza-student-protests-arrests\/\">stifled pro-Palestine speech<\/a>.<\/p>\n<p>The hard-line faction of trustees had long since gained the upper hand on the board, but the campus \u2014 and the nation \u2014 continued to be <a href=\"https:\/\/theintercept.com\/2025\/05\/10\/columbia-library-gaza-protests-students-suspended\/\">rocked<\/a> by the debate over Israel\u2019s war on Gaza, including as part of an onslaught from Donald Trump\u2019s administration that has cost the school <a href=\"https:\/\/theintercept.com\/2025\/03\/08\/columbia-trump-funding-gaza-israel\/\">hundreds of millions<\/a> in funding.<\/p>\n<p>In November, tumult would reach Shendelman\u2019s life \u2014 not, however, in her role on the Columbia board, but in her professional career. In the six months that followed, Shendelman would see controversy erupt over the pharmaceutical company she started and led \u2014 including allegations from the federal government of statutory and regulatory violations in clinical trials, and a shareholder lawsuit alleging fraud on her part. Shendelman has since denied doing anything wrong, but she lost her leading roles at the firm.<\/p>\n<p>She maintained, however, her position on the Columbia board of trustees as the body pushed for harsh responses to pro-Palestine protests and sought to consolidate power over the school. Now, the controversies around her pharmaceutical work are raising questions about her role on the university board.<\/p>\n<p><!-- BLOCK(pullquote)[0](%7B%22componentName%22%3A%22PULLQUOTE%22%2C%22entityType%22%3A%22SHORTCODE%22%2C%22optional%22%3Atrue%7D)(%7B%22pull%22%3A%22right%22%7D) --><\/p>\n<blockquote class=\"stylized pull-right\" data-shortcode-type=\"pullquote\" data-pull=\"right\"><p><!-- CONTENT(pullquote)[0] -->\u201cKeeping Shendelman on the board is just one more indication of how deeply the board has lost its way.\u201d<!-- END-CONTENT(pullquote)[0] --><\/p><\/blockquote>\n<p><!-- END-BLOCK(pullquote)[0] --><\/p>\n<p>\u201cAt a moment when the board of trustees is leading with a very heavy and misguided hand, keeping Shendelman on the board is just one more indication of how deeply the board has lost its way,\u201d said a tenured professor at Columbia\u2019s Irving Medical Center who asked to remain anonymous for fear of retaliation from the university.<\/p>\n<p>Shendelman did not respond to inquiries from The Intercept. Columbia\u2019s administration did not offer responses to questions for the board of trustees by press time.<\/p>\n<p>Shendelman had been the CEO of a pharmaceutical firm called Applied Therapeutics, a company hoping to bring two drugs to market. Shendelman was a central figure in the firm. She had founded the company; fundraised for it, including taking it public; and spearheaded the development of its lead drug candidate, govorestat, as well as its clinical studies.<\/p>\n<p>Then on November 27, Applied Therapeutics announced that govorestat was <a href=\"https:\/\/appliedtherapeutics.gcs-web.com\/node\/9861\/pdf\">rejected<\/a> by the U.S. Food and Drug Administration. On the same day, Shendelman was issued a <a href=\"https:\/\/www.fda.gov\/inspections-compliance-enforcement-and-criminal-investigations\/warning-letters\/applied-therapeutics-inc-696833-12032024\">stern warning<\/a> by the FDA. In a letter addressed to her, the agency\u2019s Center for Drug Evaluation and Research, which regulates drugs, called out Applied Therapeutics for the deletion of sensitive data ahead of an FDA inspection and failing to disclose crucial information about \u201cerrors\u201d made during clinical trials for their lead drug candidate. The problems, the FDA said, amounted to apparent statutory and regulatory violations. (Applied Therapeutics did not respond to The Intercept\u2019s request for comment.)<\/p>\n<p><!-- BLOCK(cta)[1](%7B%22componentName%22%3A%22CTA%22%2C%22entityType%22%3A%22SHORTCODE%22%2C%22optional%22%3Atrue%7D)(%7B%7D) --><\/p>\n<p><!-- END-BLOCK(cta)[1] --><\/p>\n<p>In a podcast <a href=\"https:\/\/www.youtube.com\/watch?v=4L2AT0TZmtw\">interview<\/a> this month, Shendelman said there were no safety or efficacy concerns about govorestat, and that it had been rejected by the FDA for bureaucratic reasons. (The FDA letter said Applied Therapeutic\u2019s failure to disclose certain information to the agency created issues with performing \u201can evaluation of the safety and effectiveness of the drug.\u201d)<\/p>\n<p>Following the regulator\u2019s letter, the company\u2019s stock price tanked, dropping 80 percent in three days. Within weeks, shareholders filed a <a href=\"https:\/\/storage.courtlistener.com\/recap\/gov.uscourts.nysd.633671\/gov.uscourts.nysd.633671.72.0.pdf\">lawsuit<\/a> against Applied Therapeutics, Shendelman, and another company officer, alleging that Shendelman in particular had known about problems with clinical trials since May 2024, and committed securities fraud by failing to disclose information about the issues to investors in a series of rosy public statements. The stock continued to rise on this incomplete information, the suit alleges, and Shendelman sold off stocks totaling more than $6.6 million at an \u201cartificially inflated share price,\u201d as the suit put it. The majority of the sales, more than $4.7 million worth, came in a three-day flurry in August 2024, just days after Shendelman gave a positive <a href=\"https:\/\/ir.appliedtherapeutics.com\/news-releases\/news-release-details\/applied-therapeutics-reports-second-quarter-2024-financial\">assessment<\/a> of the company\u2019s FDA application process to investors.<\/p>\n<p>In separate responses to the lawsuit, Applied Therapeutics <a href=\"https:\/\/storage.courtlistener.com\/recap\/gov.uscourts.nysd.633671\/gov.uscourts.nysd.633671.86.0.pdf\">denied<\/a> all wrongdoing, and Shendelman\u2019s lawyers <a href=\"https:\/\/storage.courtlistener.com\/recap\/gov.uscourts.nysd.633671\/gov.uscourts.nysd.633671.83.0.pdf\">moved to dismiss<\/a> the claims. They argue that none of the claims in the suit constitute fraud, that she sold only a fraction of her shares in the company, and that the allegations are based purely on \u201cconjecture, hindsight, and allegations that Dr. Shendelman was unduly optimistic about the possibility of approval.\u201d<\/p>\n<p>On December 19, a little over three weeks after the FDA issued its letter, Shendelman signed an agreement that <a href=\"https:\/\/www.sec.gov\/Archives\/edgar\/data\/1697532\/000095017024138772\/aplt-ex10_3.htm\">terminated<\/a> her employment at the company she had founded. According to the agreement, Shendelman would be paid millions on her way out.<\/p>\n<h2 class=\"wp-block-heading\" id=\"h-the-board\"><strong>The Board<\/strong><\/h2>\n<p>Even amid the dramatic changes at work, Shendelman\u2019s role at Columbia remained steady. Five months after leaving Applied Therapeutics, she remains on Columbia\u2019s powerful 21-member board of trustees as the body undertakes what critics say is a broad <a href=\"https:\/\/www.democracynow.org\/2025\/4\/2\/university_trump_gaza_harvard_princeton_columbia\">power grab<\/a> at the university.<\/p>\n<p>Her role on the board has stirred little controversy thus far, but the contours of her unceremonious exit from Applied Therapeutics are taking on heightened relevance amid a crisis at Columbia that has escalated dramatically since Trump took office.<\/p>\n<p>\u201cI am appalled to see the FDA\u2019s warning letter, and the impending class action lawsuit regarding Applied Therapeutics for their mishandling of data collection and storage,\u201d said a second professor at Columbia\u2019s Irving Medical Center, a medical doctor who asked for anonymity for fear of professional retaliation.<\/p>\n<p>Until shortly after The Intercept sent requests for comment to Columbia and Shendelman, her board of trustees biography <a href=\"https:\/\/web.archive.org\/web\/20250416143243\/https:\/secretary.columbia.edu\/directory\/shoshana-shendelman\">listed<\/a> her as the vice chair of the \u201cClinical Advisory Board\u201d of Columbia\u2019s Irving Medical Center and its Vagelos College of Physicians and Surgeons. There\u2019s little online information about a clinical advisory board, except a <a href=\"https:\/\/www.cuimc.columbia.edu\/news\/supporting-growth-our-clinical-practice\">2022 letter<\/a> from the head of the medical center announcing its formation. Hours after The Intercept sent questions about the clinical advisory board, the word \u201cclinical\u201d was removed from Shendelman\u2019s trustee biography, which now described her as a vice chair of the board of advisors at the medical center.<\/p>\n<p><!-- BLOCK(pullquote)[2](%7B%22componentName%22%3A%22PULLQUOTE%22%2C%22entityType%22%3A%22SHORTCODE%22%2C%22optional%22%3Atrue%7D)(%7B%22pull%22%3A%22left%22%7D) --><\/p>\n<blockquote class=\"stylized pull-left\" data-shortcode-type=\"pullquote\" data-pull=\"left\"><p><!-- CONTENT(pullquote)[2] -->\u201cColumbia students and faculty are finding ourselves wondering about the real commitments and values of our board.\u201d<!-- END-CONTENT(pullquote)[2] --><\/p><\/blockquote>\n<p><!-- END-BLOCK(pullquote)[2] --><\/p>\n<p>\u201cIt\u2019s a fundamental responsibility for all of us who conduct research at the medical center to do that work in accordance with the highest standards of ethical research,\u201d said the first, tenured medical professor. \u201cI don\u2019t understand how we can have someone in a senior advisory position who doesn\u2019t adhere to those same standards.\u201d<\/p>\n<p>The school is undergoing an unprecedented upheaval. Columbia\u2019s governance structure used to be a triumvirate, with the board of trustees, the president of the university, and the university senate each playing influential roles. Amid the row over pro-Palestine student protests, however, the trustees <a href=\"https:\/\/secretary.columbia.edu\/directory\/claire-shipman-acting-president\">appointed<\/a> one of their own as acting president of Columbia. Now, the administration and board are seeking an <a href=\"https:\/\/secretary.columbia.edu\/news\/update-senate-review-process\">overhaul<\/a> of the university\u2019s storied senate, a democratically elected body and the <a href=\"https:\/\/senate.columbia.edu\/sites\/senate.columbia.edu\/files\/content\/Reports_2024-25\/The%20Sundial%20Report_3.31.2025.FINAL_.pdf\">only<\/a> part of the three-pronged governance structure where students and faculty hold mandated positions.<\/p>\n<p>Looming over the power struggle is Columbia\u2019s protracted $400 million fight with the Trump administration \u2014 a fight where, according to New York Magazine, critics think the hard-line pro-Israel wing of the board of trustees are ushering in Columbia\u2019s capitulation. In the battle with Trump, the trustees and their allied university administration have <a href=\"https:\/\/www.columbiaspectator.com\/news\/2025\/04\/24\/in-rare-public-appearance-two-columbia-trustees-take-questions-at-university-senate-town-hall\/\">shied away<\/a> from answering to the senate, faculty, and other stakeholders. Among the students and faculty raising questions about the need for greater scrutiny of the trustees, Shendelman\u2019s record at Applied Therapeutics is seen as a vindication of their concerns.<\/p>\n<p>A third member of the Columbia faculty who asked for anonymity to avoid retaliation from the university said, \u201cWhether it\u2019s cooperating with the Trump attacks on science and dissent, the horror and cost of the <a href=\"http:\/\/theguardian.com\/us-news\/2025\/may\/10\/robert-hadden-sexual-assault-columbia-university-gynecologist\">Hadden affair<\/a>, or now this, Columbia students and faculty are finding ourselves wondering about the real commitments and values of our board far more often than we should.\u201d<\/p>\n<figure class=\"wp-block-ft-photo is-style-default\">\n    <figcaption class=\"photo__figcaption\">\n              <span class=\"photo__caption\">A demonstrator is arrested as Columbia University students hold a rally in support of Palestine in New York City on May 21, 2025.<\/span><br \/>\n                    <span class=\"photo__credit\">Photo: Timothy A. Clary\/AFP via Getty Images<\/span><br \/>\n          <\/figcaption><\/figure>\n<h2 class=\"wp-block-heading\" id=\"h-warning-letter\"><strong>Warning Letter<\/strong><\/h2>\n<p>The FDA conducted an inspection in the spring of 2024 into Applied Therapeutics\u2019s lead drug candidate, govorestat. With govorestat, Applied Therapeutics hoped to bring to market the first FDA-approved therapy for a rare pediatric metabolic disorder. The inspection was carried out under an FDA program to ensure compliance with standards around human test subjects in clinical trials.<\/p>\n<p>The FDA investigation that followed reviewed the inspection report, related documents, and the company\u2019s response. On November 27, the regulatory agency sent a letter addressed to Shendelman.<\/p>\n<p>\u201cThis Warning Letter informs you of objectionable conditions observed during the U.S. Food and Drug Administration (FDA) inspection conducted between April 29 and May 3, 2024,\u201d the letter says.<\/p>\n<p>Applied Therapeutics, inspectors found, likely ran afoul of the Federal Food, Drug, and Cosmetic Act, as well as federal regulations that govern clinical studies. In a dense summary of a long back-and-forth with the company, the FDA specified two categories of deficiencies with the clinical trials.<\/p>\n<p>The first was a failure to give FDA inspectors access to records related to clinical trials. On March 25, 2024, the FDA had informed Applied Therapeutics about a forthcoming inspection. Two days later, according to the letter, a third-party vendor deleted electronic records for all 47 subjects in one part of its clinical trials.<\/p>\n<p><!-- BLOCK(promote-post)[3](%7B%22componentName%22%3A%22PROMOTE_POST%22%2C%22entityType%22%3A%22SHORTCODE%22%2C%22optional%22%3Atrue%7D)(%7B%22slug%22%3A%22chilling-dissent%22%2C%22crop%22%3A%22promo%22%7D) -->  <\/p>\n<aside class=\"promote-banner\">\n    <a class=\"promote-banner__link\" href=\"https:\/\/theintercept.com\/collections\/chilling-dissent\/\"><br \/>\n              <span class=\"promote-banner__image\"><br \/>\n          <img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"150\" src=\"https:\/\/theintercept.com\/wp-content\/uploads\/2025\/04\/collection_21_AP25080472815958.jpg.webp?fit=300%2C150\" class=\"attachment-medium size-medium\" alt=\"\" srcset=\"https:\/\/theintercept.com\/wp-content\/uploads\/2025\/04\/collection_21_AP25080472815958.jpg.webp?w=1536 1536w, https:\/\/theintercept.com\/wp-content\/uploads\/2025\/04\/collection_21_AP25080472815958.jpg.webp?w=300 300w, https:\/\/theintercept.com\/wp-content\/uploads\/2025\/04\/collection_21_AP25080472815958.jpg.webp?w=768 768w, https:\/\/theintercept.com\/wp-content\/uploads\/2025\/04\/collection_21_AP25080472815958.jpg.webp?w=1024 1024w, https:\/\/theintercept.com\/wp-content\/uploads\/2025\/04\/collection_21_AP25080472815958.jpg.webp?w=540 540w, https:\/\/theintercept.com\/wp-content\/uploads\/2025\/04\/collection_21_AP25080472815958.jpg.webp?w=1000 1000w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\"\/>        <\/span><\/p>\n<div class=\"promote-banner__text\">\n<p class=\"promote-banner__eyebrow\">\n            Read our complete coverage          <\/p>\n<\/p><\/div>\n<p>    <\/a><br \/>\n  <\/aside>\n<p><!-- END-BLOCK(promote-post)[3] --><\/p>\n<p>\u201cAs a result, during the sponsor inspection, FDA was unable to access and copy and verify records and reports relating to the study,\u201d the letter says.<\/p>\n<p>In response to an earlier correspondence from the FDA, according to the November 27 letter, Applied Therapeutics said that it was able to recover data for all but 11 subjects. And the company told the FDA that the vendor had not informed Applied Therapeutics about the deletion of the records.<\/p>\n<p>\u201cWhile we acknowledge Applied Therapeutics\u2019 response, as well as the corrective and preventive actions that Applied Therapeutics has taken and plans to take, your response is inadequate because you did not include sufficient details about your corrective action plan,\u201d the letter says. \u201cAdditionally, we remain concerned that electronic data collected for critical eCOAs\u201d \u2014 electronic clinical outcome assessments \u2014 \u201cwas deleted and cannot be verified, which raises concerns about the validity and integrity of the data collected during the clinical investigation.\u201d<\/p>\n<p>The second major concern revolved around doses of the drug in question reported to the FDA. Because of mislabeling, from March to June 2021 at least 19 subjects in the Applied Therapeutics study had been administered a lower dose than required by the protocols of its study. In June 2021, Applied Therapeutics realized the error and notified its clinical sites, providing them with correct doses and updated pharmacy manuals.<\/p>\n<p>In late 2023, two years after catching these mistakes, the company submitted a report to the FDA that did not, according to last year\u2019s warning letter, disclose \u201cthe nature and extent of the dosing errors.\u201d<\/p>\n<p>\u201cIt\u2019s certainly a serious problem for a company that doesn\u2019t report this fully to FDA,\u201d Henry Greely, a medical ethics expert and professor of law at Stanford University, told The Intercept.<\/p>\n<p>The November FDA warning letter laid out further issues created by the delayed notification. \u201cThis failure raises significant concerns about the validity, reliability, and integrity of the data,\u201d the letter says. \u201cFurthermore, Applied Therapeutics\u2019 failure to disclose this critical information raises significant concerns about the sponsor\u2019s oversight and conduct of clinical investigations, including its compliance with the reporting requirements for human drug products.\u201d<\/p>\n<p>The FDA warning letter concludes, \u201cWe emphasize that as a sponsor, Applied Therapeutics has ultimate oversight of the clinical investigation, and was responsible for ensuring compliance with all applicable FDA regulations governing the conduct of clinical investigations.\u201d<\/p>\n<p>The drug regulator gave Applied Therapeutics 15 business days to outline how it would \u201cprevent similar violations in the future.\u201d<\/p>\n<h2 class=\"wp-block-heading\" id=\"h-the-lawsuit\"><strong>The Lawsuit<\/strong><\/h2>\n<p>Just over a month later, on December 17, shareholders in Applied Therapeutics filed a <a href=\"https:\/\/storage.courtlistener.com\/recap\/gov.uscourts.nysd.633671\/gov.uscourts.nysd.633671.1.0.pdf\">class-action lawsuit<\/a> against the company, Shendelman, and Riccardo Perfetti, the firm\u2019s chief medical officer, who remains in his position today. The plaintiffs sought compensation and damages for losses sustained due to what they alleged was securities fraud, among other wrongdoing linked to deceiving shareholders. (Perfetti did not respond to a request for comment.)<\/p>\n<p>The lawsuit alleges that Shendelman was made aware of issues with the application to the FDA after the agency\u2019s spring 2024 clinical site inspection. Shendelman, the suit says, continued to make positive statements about the drug trials and the New Drug Application, or NDA, process despite knowing about the problems with the study. In May, shortly after the inspection, the lawsuit quotes Shendelman saying, \u201cthings are going very well with the FDA\u201d \u2014 and that there are no \u201cmajor sticking points.\u201d<\/p>\n<p><!-- BLOCK(promote-related-post)[4](%7B%22componentName%22%3A%22PROMOTE_RELATED_POST%22%2C%22entityType%22%3A%22SHORTCODE%22%2C%22optional%22%3Atrue%7D)(%7B%22relatedPostNumber%22%3A2%7D) --><\/p>\n<p><!-- END-BLOCK(promote-related-post)[4] --><\/p>\n<p>\u201cWe are incredibly pleased by the ongoing collaborative dialogue with the FDA during the NDA review process, and we look forward to continuing to work together with the agency to bring the first potential treatment to Classic Galactosemia patients,\u201d Shendelman said in a September 2024 <a href=\"https:\/\/ir.appliedtherapeutics.com\/news-releases\/news-release-details\/applied-therapeutics-provides-regulatory-update-govorestat\">press release<\/a> \u2014 issued weeks after an exchange of letters with the FDA over the deletion of clinical data.<\/p>\n<p>On November 7, less than three weeks before the drug was rejected and the warning letter issued, Shendelman gave <a href=\"https:\/\/ir.appliedtherapeutics.com\/news-releases\/news-release-details\/applied-therapeutics-reports-third-quarter-2024-financial\">another rosy assessment<\/a>.<\/p>\n<p>\u201cAs we approach the final stages of the NDA review process for Classic Galactosemia in parallel with a near-term NDA submission for SORD Deficiency\u201d \u2014 another rare metabolic disease \u2014 \u201cwe remain confident in the promise of govorestat and its ability to address the underlying mechanisms of both diseases,\u201d Shendelman said. \u201cWe look forward to the opportunity to bring govorestat to patients in 2025.\u201d<\/p>\n<p>The November press release came two months after another exchange of letters between Applied Therapeutics and the FDA in early September where the company sought to explain that deletion of the data had been at the hands of a third-party vendor.<\/p>\n<p>As Applied Therapeutics\u2019s FDA application process moved forward, optimism about the company\u2019s business prospects grew. The stock had made steady gains, more than doubling, from around $3.50 a share at the start of 2024 to more than $10 on the eve of the FDA\u2019s rejection. In retrospect, the shareholders in the class-action suit said Shendelman\u2019s rose-tinted assessments had buoyed the stock value.<\/p>\n<p>\u201cDefendants\u2019 materially false and misleading statements artificially inflated the price of Applied common stock,\u201d the lawsuit claims. \u201cPlaintiff and the Class would not have purchased or otherwise acquired Applied securities at the prices they paid, or at all, had they known the truth.\u201d<\/p>\n<p><!-- BLOCK(pullquote)[5](%7B%22componentName%22%3A%22PULLQUOTE%22%2C%22entityType%22%3A%22SHORTCODE%22%2C%22optional%22%3Atrue%7D)(%7B%22pull%22%3A%22right%22%7D) --><\/p>\n<blockquote class=\"stylized pull-right\" data-shortcode-type=\"pullquote\" data-pull=\"right\"><p><!-- CONTENT(pullquote)[5] -->\u201cDefendants\u2019 materially false and misleading statements artificially inflated the price of Applied common stock.\u201d<!-- END-CONTENT(pullquote)[5] --><\/p><\/blockquote>\n<p><!-- END-BLOCK(pullquote)[5] --><\/p>\n<p>As she went back and forth with the FDA over the emerging problems with Applied Therapeutics\u2019s clinical tests, Shendelman began to sell off her substantial holdings in the company, according to the lawsuit. Between early January and late November 2024, she sold more than 1 million shares, worth $6.6 million. The biggest sell-off came from August 12 to 14, a three-day period that saw Shendelman get rid of three-quarters-of-a-million shares, worth more than $4.7 million. The average price per share over those days was around $6.<\/p>\n<p>In a filing responding to the lawsuit, Shendelman said some of her stock sales were for tax purposes and that, after selling off millions in stocks, she still owned a significant stake in the company. The court filing said that \u201cthe sheer size of Dr. Shendelman\u2019s holdings after the Sales is entirely inconsistent with fraudulent intent.\u201d <\/p>\n<p>Her response says that her rosy public releases by a business can\u2019t constitute fraud. <\/p>\n<p>\u201cStatements regarding the outlook and progress of drug development and interactions with the FDA are quintessential puffery and expressions of corporate optimism that cannot give rise to securities fraud under settled precedent,\u201d her motion says.<\/p>\n<p>Perfetti, the chief medical officer, moved to dismiss the lawsuit last Friday.<\/p>\n<p>\u201cAt its core, this case is about a plethora of allegedly false and misleading statements made or caused to be made to the investing public by Applied Therapeutics, Inc. (\u2018Applied\u2019 or the \u2018Company\u2019) and by Dr. Shoshana Shendelman,\u201d his <a href=\"https:\/\/storage.courtlistener.com\/recap\/gov.uscourts.nysd.633671\/gov.uscourts.nysd.633671.79.0.pdf\">motion<\/a> said. \u201cTo be sure, Plaintiff does not allege a single statement by Dr. Perfetti \u2014 <em>not one<\/em> \u2014 about the NDA or the regulatory process, let alone an actionable statement. Nor does Plaintiff plausibly allege any manipulative or deceptive acts by Dr. Perfetti that would make him a participant in Dr. Shendelman\u2019s alleged scheme, or that he somehow controlled Applied or Dr. Shendelman and is therefore liable for their alleged violations.\u201d<\/p>\n<p>Within two days of news of the FDA rejection on November 27, the stock price tumbled to around $2. Five days after Shendelman received the FDA warning letter, the company acknowledged it in a Securities and Exchange Commission <a href=\"https:\/\/appliedtherapeutics.gcs-web.com\/static-files\/b7f63e5f-8834-46e0-a96a-508b02d72588\">disclosure<\/a>. A day later, the FDA posted a copy online.<\/p>\n<h2 class=\"wp-block-heading\" id=\"h-termination\"><strong>Termination<\/strong><\/h2>\n<p>On December 19, two days after the lawsuit was filed, Shendelman signed an agreement that <a href=\"https:\/\/contracts.justia.com\/companies\/applied-therapeutics-inc-8499\/contract\/1306915\/\">terminated<\/a> her employment at Applied Therapeutics \u2014 effective immediately. \u201cRegardless of whether you sign this Agreement, the last day of your employment with the Company will be December 19, 2024,\u201d the agreement said. Shendelman left her positions as Applied Therapeutics\u2019s CEO, president, and chair of the board of directors. A day later, on December 20, the stock fell to $0.88. Since the eve of the FDA\u2019s rejection less than a month earlier, the stock had lost around 90 percent of its value.<\/p>\n<p><!-- BLOCK(pullquote)[6](%7B%22componentName%22%3A%22PULLQUOTE%22%2C%22entityType%22%3A%22SHORTCODE%22%2C%22optional%22%3Atrue%7D)(%7B%22pull%22%3A%22left%22%7D) --><\/p>\n<blockquote class=\"stylized pull-left\" data-shortcode-type=\"pullquote\" data-pull=\"left\"><p><!-- CONTENT(pullquote)[6] -->Her termination agreement said Shendelman would receive more than $3 million on her way out of the company.<!-- END-CONTENT(pullquote)[6] --><\/p><\/blockquote>\n<p><!-- END-BLOCK(pullquote)[6] --><\/p>\n<p>Her termination agreement said Shendelman would receive more than $3 million on her way out of the company. She was paid a lump sum of nearly $1 million in cash severance, plus more than $2 million of payment for restricted stocks, of which some $700,000 would go directly to her attorney.<\/p>\n<p>According to an examination of the Internet Archive, Columbia had not updated her board of trustees biography to reflect Shendelman\u2019s departure from Applied Therapeutics until mid-April. By then, she already had other prospects: Since March 2025, according to her LinkedIn profile, Shendelman has been working as president of Retension Pharmaceuticals and Response Pharmaceuticals.<\/p>\n<p>Once in her new positions at Retension and Response, Shendelman began inveighing against what she saw as one of the ills of the pharmaceutical world: FDA regulations.<\/p>\n<p>\u201cNow is the time for us to overhaul the archaic procedural measures, including the Food and Drug Administration\u2019s (FDA) outdated policies and procedures,\u201d Shendelman wrote in an <a href=\"https:\/\/www.realclearmarkets.com\/articles\/2025\/05\/07\/permit_bureaucracy_means_people_die_waiting_for_therapeutic_advances_1107982.html\">op-ed<\/a> earlier this month. \u201cIf we continue to permit bureaucracy to impede the advancement of science, then people will continue to die waiting for therapeutic advances \u2014 and that is unacceptable.\u201d<\/p>\n<p>Then, on a podcast that aired earlier this month, Shendelman again ripped FDA regulations in an <a href=\"https:\/\/www.youtube.com\/watch?v=4L2AT0TZmtw\">episode<\/a> titled \u201cInnovation on Hold: The FDA\u2019s Regulatory Standstill.\u201d<\/p>\n<p>When the podcast host asked Shendelman for an example of a drug slowed down by the FDA regulatory process that \u201cshould have been pushed through,\u201d Shendelman responded with her own drug, govorestat.<\/p>\n<p>\u201cI believe that we showed a very strong safety and efficacy profile,\u201d she said. Shendelman then added that there were no \u201cpatient safety issues or any patient safety concerns,\u201d characterizing the FDA rejection as being purely bureaucratic \u2014 an assessment out of step with the FDA warning letter, which said the problems were relevant to the agency\u2019s ability to draw solid conclusions about how well the drug worked or whether it was safe.<\/p>\n<p>Even as she advocated for curtailing FDA meddling in drug development, the Columbia board of trustees she serves on was looking to involve itself in everything from academics to hiring to discipline. The small circle running the prestigious New York research university sought to be the ultimate regulatory body of campus life.<\/p>\n<p><!-- BLOCK(newsletter)[7](%7B%22componentName%22%3A%22NEWSLETTER%22%2C%22entityType%22%3A%22SHORTCODE%22%2C%22optional%22%3Atrue%7D)(%7B%7D) --><\/p>\n<div class=\"newsletter-embed flex-col items-center print:hidden\" id=\"third-party--article-mid\" data-module=\"InlineNewsletter\" data-module-source=\"web_intercept_20241230_Inline_Signup_Replacement\">\n<div class=\"-mx-5 sm:-mx-10 p-5 sm:px-10 xl:-ml-5 lg:mr-0 xl:px-5 bg-accentLight hidden\" data-name=\"subscribed\">\n<h2 class=\"font-sans font-light uppercase text-[30px] leading-8 text-white tracking-[0.01em] mb-0\">\n      We\u2019re independent of corporate interests \u2014 and powered by members. Join us.    <\/h2>\n<p>    <a href=\"https:\/\/join.theintercept.com\/donate\/now\/?referrer_post_id=492663&amp;referrer_url=https%3A%2F%2Ftheintercept.com%2F2025%2F05%2F27%2Fcolumbia-university-trustee-shendelman-sued-pharma%2F&amp;source=web_intercept_20241230_Inline_Signup_Replacement\" class=\"border border-white !text-white font-mono uppercase p-5 inline-flex items-center gap-3 hover:bg-white hover:!text-accentLight focus:bg-white focus:!text-accentLight\" data-name=\"donateCTA\" data-action=\"handleDonate\"><br \/>\n      Become a member      <span class=\"font-icons icon-TI_Arrow_02_Right\"\/><br \/>\n    <\/a>\n  <\/div>\n<div class=\"group default w-full px-5 hidden\" data-name=\"unsubscribed\">\n<div class=\"px-5 border-[10px] border-accentLight\">\n<div class=\"bg-white -my-2.5 relative block px-4 md:px-5\">\n<h2 class=\"font-sans font-body text-[30px] font-bold tracking-[0.01em] leading-8 mb-0 xl:text-[37px] xl:leading-[39px]\">\n          <span class=\"group-[.subscribed]:hidden\"><br \/>\n            Join Our Newsletter          <\/span><br \/>\n          <span class=\"group-[.default]:hidden\"><br \/>\n            Thank You For Joining!          <\/span><br \/>\n        <\/h2>\n<p class=\"text-[27px] mb-3.5 font-bold text-accentLight tracking-[0.01em] leading-[29px] font-sans xl:text-[37px] xl:leading-[39px]\">\n          <span class=\"group-[.subscribed]:hidden\"><br \/>\n            Original reporting. Fearless journalism. Delivered to you.          <\/span><br \/>\n          <span class=\"group-[.default]:hidden\"><br \/>\n            Will you take the next step to support our independent journalism by becoming a member of The Intercept?          <\/span>\n        <\/p>\n<p>        <a href=\"https:\/\/join.theintercept.com\/donate\/now\/?referrer_post_id=492663&amp;referrer_url=https%3A%2F%2Ftheintercept.com%2F2025%2F05%2F27%2Fcolumbia-university-trustee-shendelman-sued-pharma%2F&amp;source=web_intercept_20241230_Inline_Signup_Replacement\" class=\"group-[.default]:hidden border border-accentLight text-accentLight font-sans px-5 py-3.5 inline-flex items-center gap-3 text-[20px] font-bold\" data-action=\"handleDonate\"><br \/>\n          Become a member          <span class=\"font-icons icon-TI_Arrow_02_Right\"\/><br \/>\n        <\/a><\/p>\n<div class=\"font-sans text-accentLight text-[10px] leading-[13px] text-balance [&amp;_a]:text-accentLight [&amp;_a]:font-bold [&amp;_a:hover]:underline group-[.subscribed]:hidden\">\n<p>By signing up, I agree to receive emails from The Intercept and to the <a href=\"https:\/\/theintercept.com\/privacy-policy\/\">Privacy Policy<\/a> and <a href=\"https:\/\/theintercept.com\/terms-use\/\">Terms of Use<\/a>.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/div>\n<p><!-- END-BLOCK(newsletter)[7] --><\/p>\n<p>At a time when the university\u2019s federal and research funding is under threat from the Trump administration, the trustees have been accused of running the university without seeking input from faculty, staff, and students. Their latest efforts to <a href=\"https:\/\/www.nytimes.com\/2025\/05\/06\/nyregion\/columbia-university-senate-review.html\">overhaul<\/a> the university senate reinforced those <a href=\"https:\/\/www.columbiaspectator.com\/news\/2025\/04\/23\/shared-governance-is-under-threat-student-senators-release-statement-scrutinizing-shipmans-impending-review-of-university-senate\/\">concerns<\/a>.<\/p>\n<p>\u201cColumbia\u2019s governance structure resembles a triangle, with each side representing the Trustees, the President, and the University Senate, respectively,\u201d the university senate student affairs committee co-chairs wrote in an April <a href=\"https:\/\/riseupcolumbia.substack.com\/p\/town-hall-tonight\">statement<\/a>. \u201cThat triangle is now collapsing.\u201d<\/p>\n<p>The senate has been from time to time a thorn in the side of the board of trustees. In March, the senate released the sprawling \u201c<a href=\"https:\/\/senate.columbia.edu\/content\/sundial-report\">Sundial Report<\/a>,\u201d documenting what it said were university actions since October 7, 2023, that ran afoul of the school\u2019s norms, traditions, and mission. The board came in for thinly veiled criticism; the report said the trustees ought to be \u201cultimately responsible for institutional fidelity to the University\u2019s mission, integrity, and efficiency of its operations.\u201d<\/p>\n<p>For the medical center professor who was shocked by the FDA letter, the missteps made by Applied Therapeutics when Shendelman was at the helm also spoke to her ability to serve on the board.<\/p>\n<p>\u201cIt shouldn\u2019t be tolerated for anyone serving on the university\u2019s board of trustees,\u201d the professor said. \u201cShendelman is someone who is responsible for our fiduciary commitments at the university.\u201d<\/p>\n<\/p><\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/theintercept.com\/2025\/05\/27\/columbia-university-trustee-shendelman-sued-pharma\/\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>For more than a year and a half, Shoshana Shendelman has been at the epicenter of one of the biggest stories in the country: the raging campus battles over Israel\u2019s war on Gaza. Earlier in the year, Columbia University, an institution deeply entwined with Shendelman\u2019s life, was the site of the first major university protest [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":3552,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[],"class_list":{"0":"post-3551","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-usa-news"},"_links":{"self":[{"href":"https:\/\/gunowner-news.com\/index.php?rest_route=\/wp\/v2\/posts\/3551","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gunowner-news.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gunowner-news.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gunowner-news.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/gunowner-news.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3551"}],"version-history":[{"count":0,"href":"https:\/\/gunowner-news.com\/index.php?rest_route=\/wp\/v2\/posts\/3551\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/gunowner-news.com\/index.php?rest_route=\/wp\/v2\/media\/3552"}],"wp:attachment":[{"href":"https:\/\/gunowner-news.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3551"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gunowner-news.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3551"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gunowner-news.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3551"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}