Class Action Lawsuit Filed Against Soleno Therapeutics

Written by Emily J. Thompson, Senior Investment Analyst

Source: Globenewswire

Updated: 21 hours ago

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SLNO+2.11%

Should l Buy SLNO?

Source: Globenewswire

Lawsuit Background: Bragar Eagel & Squire has filed a class action lawsuit against Soleno Therapeutics in the Northern District of California on behalf of investors who purchased shares between March 26, 2025, and November 4, 2025, alleging the company concealed significant safety concerns regarding its DCCR drug.
Allegation Details: The complaint claims that Soleno systematically downplayed and failed to disclose serious safety issues related to DCCR, including fluid retention in clinical trial participants, which posed greater risks than communicated to investors.
Business Impact: The lack of transparency regarding DCCR's commercial viability and associated risks has led to investor losses following the revelation of true information, potentially resulting in a significant stock price decline and damaging the company's reputation and future financing capabilities.
Next Steps: Investors must apply by May 5, 2026, to be appointed as lead plaintiffs in the lawsuit, with the law firm offering free consultations to encourage affected investors to understand their legal rights and options.

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Analyst Views on SLNO

Wall Street analysts forecast SLNO stock price to rise

8 Analyst Rating

8 Buy

0 Hold

0 Sell

Strong Buy

Current: 39.770

Low

75.00

Averages

110.50

High

125.00

Current: 39.770

Low

75.00

Averages

110.50

High

125.00

H.C. Wainwright

Raghuram Selvaraju

Buy

downgrade

$120 -> $100

2026-03-04

Reason

H.C. Wainwright

Raghuram Selvaraju

Price Target

$120 -> $100

AI Analysis

2026-03-04

downgrade

Buy

Reason

H.C. Wainwright analyst Raghuram Selvaraju lowered the firm's price target on Soleno Therapeutics to $100 from $120 and keeps a Buy rating on the shares post the Q4 report. The firm says the company has a solid commercial outlook. The analyst modulated the firm's peak market share expectations for Vykat in the U.S. to 20% of the total Prader-Willi syndrome market.

Wells Fargo

Overweight

downgrade

$114 -> $110

2026-02-27

Reason

Wells Fargo

Price Target

$114 -> $110

2026-02-27

downgrade

Overweight

Reason

Wells Fargo lowered the firm's price target on Soleno Therapeutics to $110 from $114 and keeps an Overweight rating on the shares. While management's commentary on building out a pipeline plus LCM for Vykat XR and the CFO's retirement may remove some investors' near-term takeout thesis, the firm notes shares remain cheap relative to expected FY26 revenue and cash flow. Wells is a buyer at these levels.

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About SLNO

Soleno Therapeutics, Inc. is a biopharmaceutical company. The Company is focused on developing novel therapeutics for the treatment of rare diseases. The Company’s lead product candidate, diazoxide choline extended-release tablets (DCCR), is for the treatment of Prader-Willi syndrome (PWS) in individuals four years and older who have hyperphagia. DCCR contains diazoxide choline, a potent ATP-sensitive potassium (KATP) channel activator. DCCR tablets consist of the active ingredient diazoxide choline, a choline salt of diazoxide, which is a benzothiadiazine. Its proposed mode of action, with targets in the brain, pancreas and fat tissue, has the potential to broadly impact complex diseases like PWS to reduce appetite, reduce food-seeking, decrease insulin and leptin resistance, and reduce body fat. The Company has Breakthrough Therapy and Fast-Track designations in the United States and Orphan Drug designations in the United States and European Union.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.

Soleno Therapeutics Faces Class Action Lawsuit

15 hours agoGlobenewswire

Stock Price Plunge: Soleno Therapeutics experienced a sharp 27% drop in stock price on November 4, 2025, following the release of its third-quarter financial results, indicating significant investor harm due to major disruptions in the commercial launch of its lead drug, DCCR.
Undisclosed Safety Risks: The class action lawsuit alleges that Soleno systematically concealed critical safety evidence related to “excess fluid retention” in its Phase 3 clinical trials, leading to a 12% decline in stock value in August 2025, which undermined market confidence in the drug's commercial viability.
Decline in Patient Engagement: Management disclosed a decrease in patient start forms and an increase in discontinuations within the Prader-Willi syndrome community, correlating with a 19% drop in share value starting September 10, 2025, reflecting a significant loss of investor confidence in DCCR.
Legal Consultation Opportunity: Investors are encouraged to file a lead plaintiff motion by May 5, 2026, with the Portnoy Law Firm offering complimentary case evaluations to assist investors in pursuing claims for losses incurred due to corporate misconduct, highlighting the importance of legal recourse for affected investors.

Investigation Launched into Soleno Therapeutics' Securities Violations

16 hours agoNewsfilter

Investor Loss Investigation: The Law Offices of Howard G. Smith have announced an investigation into Soleno Therapeutics regarding potential violations of federal securities laws, aiming to assist investors in recovering their losses.
Stock Price Plunge: Following the release of a 415-page report by activist investor Scorpion Capital, Soleno's stock price fell by $9.27, or 11.98%, over two trading days, closing at $68.09, significantly harming investors.
Patient Safety Concerns: Soleno disclosed in a Form 8-K to the SEC that a patient died after taking DCCR, causing the stock price to drop by $13.49, or 19.21%, over two days, closing at $56.72, further injuring investors.
Financial Impact: In its Q3 2025 financial results, Soleno reported that the Scorpion Capital report disrupted DCCR's launch trajectory, leading to fewer patient start forms and increased discontinuations, resulting in a stock price decline of $16.98, or 26.59%, to close at $46.87.

Securities Class Action Filed Against Soleno Therapeutics

18 hours agoGlobenewswire

Lawsuit Background: A securities class action has been filed against Soleno Therapeutics (NASDAQ: SLNO) to represent investors who purchased common stock between March 26 and November 4, 2025, highlighting significant investor concerns regarding the company's future prospects.
Stock Price Plunge: Following Soleno's disappointing report on DCCR (trademarked as VYKAT™ XR) on November 5, 2025, the stock price plummeted by 26% that day, indicating strong market skepticism about the safety and efficacy of its products.
Safety Concerns: The lawsuit alleges that Soleno concealed significant safety risks associated with DCCR, including issues of fluid retention in clinical trial participants, leading to a severe misjudgment of the drug's commercial viability by investors.
Market Trust Crisis: The trust crisis triggered by short seller Scorpion Capital's report led Soleno to acknowledge during its November 4, 2025 earnings call that its launch trajectory had been disrupted, resulting in fewer start forms and increased discontinuations for non-serious adverse events, further exacerbating investor panic.