Rosen Law Firm Encourages Alvotech Investors to Inquire About Securities Class Action Investigation

New York, USA – January 18, 2026: The Rosen Law Firm, a global investor rights law practice, has announced a detailed investigation into potential securities law violations on behalf of shareholders who purchased stock in Alvotech (NASDAQ: ALVO). According to legal filings and press statements released this week, the firm believes that Alvotech may have provided materially misleading information to the public, which could have adversely affected investors’ decisions and financial outcomes.

The investigation is focused on determining whether Alvotech and its executives failed to fully disclose accurate business conditions, particularly concerning regulatory developments tied to the company’s pharmaceutical products. This announcement invites eligible investors to participate in a possible class action lawsuit aimed at securing compensation for losses suffered due to the alleged misrepresentation.

Background: Who Is Alvotech?

Alvotech is a biotechnology company that develops and manufactures biosimilar medications — products designed to be highly similar to existing biological drugs but often offered at lower cost. The company operates globally and has a number of products in various stages of development, including therapeutics targeting autoimmune disorders, eye diseases, and other serious health conditions.

The company’s stock is publicly traded on the NASDAQ under the ticker ALVO. As with many biotech firms, Alvotech’s valuation can be sensitive to regulatory updates, clinical trial results, and approvals from the U.S. Food and Drug Administration (FDA) or other regulatory bodies.

What Triggered the Investigation?

The class action investigation announced by Rosen Law Firm stems from a press release issued by Alvotech on November 2, 2025. In that press release, the company discussed its U.S. Biologics License Application (BLA) for one of its lead drug candidates, AVT05, including an update on its regulatory status with the FDA.

According to the company’s statement, the FDA issued a complete response letter (CRL) for the application. A complete response letter is an official communication from the FDA indicating that a submitted application cannot be approved in its present form and lists deficiencies that need to be addressed. In this case, the CRL identified issues connected to observations from a pre-license inspection of Alvotech’s manufacturing facility, which took place earlier in July 2025.

Crucially, investors and analysts have argued that Alvotech may have not fully disclosed the scope or potential impact of these manufacturing concerns and regulatory challenges in a timely or complete manner. According to securities law claims, such omissions or misrepresentations may have artificially inflated the company’s stock price or misled investors about the company’s true condition.

Market Reaction and Share Price Movement

The news of the FDA’s complete response letter had a significant impact on Alvotech’s share price. On November 3, 2025, one day after the press release, Alvotech’s stock plunged by approximately 34%. The price then experienced further downward movement in the following trading session.

Such dramatic stock movements are often viewed as evidence that the market was taken by surprise, suggesting that critical information may not have been fully communicated to shareholders ahead of time — a core allegation in many class action investment-related lawsuits.

What Is the Rosen Law Firm?

The Rosen Law Firm, P.A. is a U.S.-based securities litigation firm specializing in representing investors in class action lawsuits when companies are accused of violating federal securities laws. Founded in 2001 and headquartered in New York City, the firm has a long track record of handling high-profile cases and recovering damages on behalf of shareholders worldwide.

According to publicly available profiles, Rosen Law has been ranked among the top law firms in the nation for the number of securities settlements it has secured, and it has been involved in recovering nearly $2 billion for investors over its history.

In its press announcement about Alvotech, Rosen Law Firm emphasized the importance of selecting experienced counsel, noting that not all firms issue notices or lead securities litigation cases with the same level of expertise or resources.

What the Lawsuit Seeks to Accomplish

The class action being prepared by Rosen Law is designed to help investors who bought Alvotech securities between specific dates. If successful, the lawsuit could result in compensation for losses that shareholders suffered due to alleged misrepresentations or omissions of material facts by the company.

Unlike individual lawsuits, a class action allows a group of similarly situated investors to combine their cases into a single legal action. In securities litigation, this approach can improve efficiency and ensure that smaller investors receive representation comparable to institutional shareholders.

Rosen Law has stated that there are no out-of-pocket fees or costs for eligible investors through contingency fee arrangements, meaning that the firm only gets paid if the case results in compensation.

How Investors Can Participate

To participate in the class action lawsuit, investors are typically asked to submit forms or contact the law firm handling the case. In this instance, Rosen Law Firm has provided both an online submission form and contact details for its case administrators.

Investors who believe they might qualify should consider reviewing the eligibility requirements and deadlines for joining the lawsuit. In many securities class actions, deadlines to file claims or opt out of the class can be strict.

Broader Implications for Alvotech and Investors

The investigation and potential class action have broader implications for corporate disclosure practices and investor confidence in the biotechnology sector. Biotech companies, particularly those engaged in drug development and regulatory submissions, face unique risks that can materially affect stock performance.

If the lawsuit proceeds and results in a settlement or judgment, it could influence how Alvotech and similar companies communicate sensitive regulatory updates to shareholders in the future. Transparent disclosure of material information — especially regarding FDA decisions or manufacturing issues — is a core obligation under U.S. securities laws.

What Analysts Are Saying

While legal proceedings are separate from financial analysis, market watchers often interpret class action lawsuits as signals that a company may have experienced operational or communication challenges. In Alvotech’s case, the significant drop in share price following the FDA CRL raised questions about how roughly the regulatory process was communicated to the investing public.

Some analysts suggest that regulatory setbacks like complete response letters are not necessarily unusual in the biotech industry; however, the timing and clarity of corporate reporting can influence investor perceptions and stock volatility.

Legal Standards in Securities Class Actions

In a securities class action, plaintiffs must generally prove that:

• The company made false statements or omitted important information;
• Investors relied on those statements when deciding to buy or sell stock;
• The misleading information caused financial losses;
• Damages resulted from the alleged misconduct.

If the court finds these elements are met, investors may receive monetary compensation as part of a settlement or judgment.

Next Steps for Shareholders

Individual investors who believe they might have purchased Alvotech securities during the relevant period are encouraged to gather documentation of their transactions and consult with legal counsel. Participation in a class action does not require initiating a separate lawsuit; instead, eligible investors can benefit from collective legal action while sharing legal costs across the group.

Given the complexity of securities laws and the importance of timing in these cases, investors should make decisions about participation promptly to avoid missing key deadlines.

Conclusion: What This Means for the Market

The investigation into Alvotech and the potential class action represent a significant development for the company’s investors and highlight the ongoing responsibilities that publicly traded companies have to provide accurate, transparent information. While regulatory challenges are part of doing business in the biotech sector, how those challenges are communicated can have material consequences for shareholders.

As this case unfolds, many investors will be watching both the legal proceedings and Alvotech’s operational responses. Shareholders who participate in the class action may receive compensation if the lawsuit is successful, while the broader market may view the case as a reminder of the importance of thorough corporate disclosure.

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