Faruqi & Faruqi Investigates Soleno Securities Fraud Case
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 01 2026
0mins
Should l Buy SLNO?
Source: Globenewswire
- Legal Investigation Launched: Faruq & Faruq LLP is investigating potential securities fraud claims against Soleno Therapeutics (NASDAQ: SLNO), particularly concerning safety issues related to its DCCR drug, urging investors to contact them by May 5, 2026, to seek lead plaintiff status.
- Stock Price Volatility: Following a critical report from Scorpion Capital on August 15, 2025, which raised significant concerns about the safety and efficacy of Soleno's drug, the stock price plummeted from $77 to $68, marking a nearly 12% decline within two trading days.
- Patient Safety Risks: The clinical trials for Soleno have been accused of downplaying safety concerns related to DCCR, including issues of fluid retention among participants, which raises serious questions about the drug's commercial viability and could adversely affect its market performance.
- Financial Results Impact: On November 4, 2025, Soleno reported third-quarter results indicating that the Scorpion Capital report disrupted the launch trajectory of DCCR, leading to fewer patient start forms and increased discontinuations, resulting in a 27% drop in stock price in a single day.
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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: 52.670
Low
75.00
Averages
110.50
High
125.00
Current: 52.670
Low
75.00
Averages
110.50
High
125.00
About SLNO
Soleno Therapeutics, Inc. is focused on the development and commercialization of novel therapeutics for the treatment of rare diseases. Its first commercial product, VYKAT XR (diazoxide choline) extended-release tablets, is a once-daily oral treatment for hyperphagia in adults and children four years of age and older with Prader-Willi syndrome (PWS). VYKAT XR contains diazoxide choline, a potent ATP-sensitive potassium (KATP) channel activator. The KATP channels play a central role in the regulation of a number of physiological processes which may otherwise be dysregulated, contributing to the pathophysiology of several diseases. In the context of the underlying genetic or structural defects in PWS, these pathophysiological processes may cumulatively contribute to increases in appetite and aggressive food seeking, lack of satiety, accumulation of excess body fat and the establishment and perpetuation of the obese state. PWS is a rare, complex genetic neurobehavioral/metabolic disorder.
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.
Class Action Lawsuit Filed Against Soleno Therapeutics for Securities Fraud
- Lawsuit Background: Kahn Swick & Foti has initiated a class action lawsuit against Soleno Therapeutics, alleging that the company failed to disclose critical information between March 26, 2025, and November 4, 2025, resulting in investor losses, highlighting significant transparency issues within the company.
- Allegation Details: The complaint asserts that Soleno and certain executives systematically minimized and failed to disclose substantial safety concerns related to the DCCR clinical trial, including excessive fluid retention among participants, indicating serious safety risks that could impact the product's market performance.
- Business Impact: The undisclosed safety risks raise doubts about DCCR's commercial viability, potentially leading to increased patient discontinuation rates, reduced prescriber willingness, and adverse regulatory actions, which could further damage the company's reputation and expose it to legal liabilities.
- Investor Action: Affected investors must request to be appointed as lead plaintiffs by May 5, 2026, to seek recovery in the lawsuit, demonstrating active engagement from investors regarding corporate governance and accountability in the wake of alleged fraud.
See More
Reminder of Class Action Lawsuit for Soleno Therapeutics Securities
- Class Action Notice: Rosen Law Firm reminds investors who purchased Soleno Therapeutics securities between March 26, 2025, and November 4, 2025, to apply as lead plaintiffs by May 5, 2026, to participate in the class action and seek compensation.
- Lawsuit Background: The lawsuit alleges that Soleno concealed significant safety issues related to its DCCR drug during clinical trials, including serious side effects like fluid retention in participants, exposing investors to greater financial risks.
- Legal Counsel Advice: Rosen Law Firm emphasizes the importance of selecting experienced legal counsel to effectively protect investors' rights, advising against working with firms that merely act as intermediaries.
- Historical Performance: The firm has recovered over $438 million for investors in 2019 alone and achieved the largest securities class action settlement against a Chinese company in 2017, showcasing its strong capabilities in securities litigation.
See More
Soleno Therapeutics Faces Securities Class Action Lawsuit
- Lawsuit Reminder: Hagens Berman law firm alerts investors of the upcoming lead plaintiff deadline on May 5, 2026, for the securities class action against Soleno Therapeutics (NASDAQ:SLNO), urging those who purchased shares between March 26, 2025, and November 4, 2025, and suffered significant losses to submit their claims.
- Safety Risk Allegations: The lawsuit alleges that Soleno misrepresented the safety and commercial viability of its flagship product, VYKAT™ XR (DCCR), for treating Prader-Willi syndrome, concealing critical safety risks that have severely undermined investor confidence in the company’s future.
- Stock Price Plunge: On November 4, 2025, Soleno reported Q3 financial results, admitting disruptions in DCCR's launch trajectory, which led to a staggering 27% drop in stock price in a single day, reflecting market disappointment in the company's prospects.
- Whistleblower Program: Hagens Berman encourages whistleblowers with non-public information to assist in the investigation, as under the new program, those providing original information may receive rewards of up to 30% of any successful SEC recovery, further driving the inquiry into Soleno's practices.
See More
Class Action Lawsuits Filed Against Boston Scientific and Others
- Boston Scientific Lawsuit: A class action lawsuit against Boston Scientific Corporation (NYSE:BSX) alleges that from July 23, 2025, to February 3, 2026, the company failed to disclose that its U.S. electrophysiology segment's growth rate was unsustainable, which severely undermined investor confidence and is expected to negatively impact stock performance.
- Eos Energy Issues: Eos Energy Enterprises (NASDAQ:EOSE) faces a class action lawsuit for the period from November 5, 2025, to February 26, 2026, alleging that the company could not achieve necessary production ramp-up and that its battery line downtime exceeded industry norms, potentially leading to a decline in market share and investor trust.
- Soleno Therapeutics Risks: Soleno Therapeutics, Inc. (NASDAQ:SLNO) is accused in a class action lawsuit covering March 26, 2025, to November 4, 2025, of concealing significant safety concerns related to its DCCR clinical trial, which could materially affect its commercial viability and expose investors to legal and reputational risks.
- Nektar Therapeutics Trial Issues: Nektar Therapeutics (NASDAQ:NKTR) is implicated in a class action lawsuit for the period from February 26, 2025, to December 15, 2025, for failing to adhere to trial protocols in its REZOLVE-AA trial, likely compromising the trial's integrity and further eroding investor confidence in the company's future prospects.
See More
Investor Rights Law Firm Investigates Multiple Companies for Potential Violations
- Legal Investigation Launched: Halper Sadeh LLC is investigating Soleno Therapeutics, Inc. (NASDAQ:SLNO) regarding its sale to Neurocrine Biosciences for $53.00 per share in cash, potentially infringing on shareholder rights.
- Shareholder Rights Protection: The transaction between TopBuild Corp. (NYSE:BLD) and QXO, Inc. allows shareholders to choose between $505.00 in cash or 20.2 shares of QXO common stock per TopBuild share, prompting Halper Sadeh LLC to remind shareholders to consider their rights and options.
- Cash and Stock Transaction: Stellar Bancorp, Inc. (NYSE:STEL) is selling to Prosperity Bancshares, Inc. for 0.3803 shares of Prosperity common stock and $11.36 in cash per Stellar share, with Halper Sadeh LLC potentially seeking increased consideration.
- Legal Fee Arrangement: Halper Sadeh LLC offers legal services on a contingency fee basis, allowing shareholders to consult about their rights without upfront costs, demonstrating a commitment to protecting investor interests.
See More
Reminder of Class Action Lawsuit Against Soleno Therapeutics
- Lawsuit Background: Soleno Therapeutics is facing a class action lawsuit due to safety concerns regarding its DCCR drug, with investors who purchased stock between March 26, 2025, and November 4, 2026, potentially eligible to recover losses.
- Stock Price Volatility: On August 15, 2025, Soleno's stock price dropped 11.98% to $68.09 within two days following a report from Scorpion Capital, indicating market concerns over the drug's safety.
- Further Losses: On September 10, 2025, Soleno disclosed a patient death linked to DCCR, causing the stock to decline by 19.21% to $56.72, exacerbating investor losses.
- Financial Impact: On November 4, 2025, Soleno reported that DCCR's market launch was negatively affected, leading to a 26.59% drop in stock price to $46.87, reflecting a severe loss of investor confidence in the company's future prospects.
See More
Class Action Lawsuit Filed Against Soleno Therapeutics for Securities Fraud
- Lawsuit Background: Kahn Swick & Foti has initiated a class action lawsuit against Soleno Therapeutics, alleging that the company failed to disclose critical information between March 26, 2025, and November 4, 2025, resulting in investor losses, highlighting significant transparency issues within the company.
- Allegation Details: The complaint asserts that Soleno and certain executives systematically minimized and failed to disclose substantial safety concerns related to the DCCR clinical trial, including excessive fluid retention among participants, indicating serious safety risks that could impact the product's market performance.
- Business Impact: The undisclosed safety risks raise doubts about DCCR's commercial viability, potentially leading to increased patient discontinuation rates, reduced prescriber willingness, and adverse regulatory actions, which could further damage the company's reputation and expose it to legal liabilities.
- Investor Action: Affected investors must request to be appointed as lead plaintiffs by May 5, 2026, to seek recovery in the lawsuit, demonstrating active engagement from investors regarding corporate governance and accountability in the wake of alleged fraud.
See More
Reminder of Class Action Lawsuit for Soleno Therapeutics Securities
- Class Action Notice: Rosen Law Firm reminds investors who purchased Soleno Therapeutics securities between March 26, 2025, and November 4, 2025, to apply as lead plaintiffs by May 5, 2026, to participate in the class action and seek compensation.
- Lawsuit Background: The lawsuit alleges that Soleno concealed significant safety issues related to its DCCR drug during clinical trials, including serious side effects like fluid retention in participants, exposing investors to greater financial risks.
- Legal Counsel Advice: Rosen Law Firm emphasizes the importance of selecting experienced legal counsel to effectively protect investors' rights, advising against working with firms that merely act as intermediaries.
- Historical Performance: The firm has recovered over $438 million for investors in 2019 alone and achieved the largest securities class action settlement against a Chinese company in 2017, showcasing its strong capabilities in securities litigation.
See More
Soleno Therapeutics Faces Securities Class Action Lawsuit
- Lawsuit Reminder: Hagens Berman law firm alerts investors of the upcoming lead plaintiff deadline on May 5, 2026, for the securities class action against Soleno Therapeutics (NASDAQ:SLNO), urging those who purchased shares between March 26, 2025, and November 4, 2025, and suffered significant losses to submit their claims.
- Safety Risk Allegations: The lawsuit alleges that Soleno misrepresented the safety and commercial viability of its flagship product, VYKAT™ XR (DCCR), for treating Prader-Willi syndrome, concealing critical safety risks that have severely undermined investor confidence in the company’s future.
- Stock Price Plunge: On November 4, 2025, Soleno reported Q3 financial results, admitting disruptions in DCCR's launch trajectory, which led to a staggering 27% drop in stock price in a single day, reflecting market disappointment in the company's prospects.
- Whistleblower Program: Hagens Berman encourages whistleblowers with non-public information to assist in the investigation, as under the new program, those providing original information may receive rewards of up to 30% of any successful SEC recovery, further driving the inquiry into Soleno's practices.
See More
Class Action Lawsuits Filed Against Boston Scientific and Others
- Boston Scientific Lawsuit: A class action lawsuit against Boston Scientific Corporation (NYSE:BSX) alleges that from July 23, 2025, to February 3, 2026, the company failed to disclose that its U.S. electrophysiology segment's growth rate was unsustainable, which severely undermined investor confidence and is expected to negatively impact stock performance.
- Eos Energy Issues: Eos Energy Enterprises (NASDAQ:EOSE) faces a class action lawsuit for the period from November 5, 2025, to February 26, 2026, alleging that the company could not achieve necessary production ramp-up and that its battery line downtime exceeded industry norms, potentially leading to a decline in market share and investor trust.
- Soleno Therapeutics Risks: Soleno Therapeutics, Inc. (NASDAQ:SLNO) is accused in a class action lawsuit covering March 26, 2025, to November 4, 2025, of concealing significant safety concerns related to its DCCR clinical trial, which could materially affect its commercial viability and expose investors to legal and reputational risks.
- Nektar Therapeutics Trial Issues: Nektar Therapeutics (NASDAQ:NKTR) is implicated in a class action lawsuit for the period from February 26, 2025, to December 15, 2025, for failing to adhere to trial protocols in its REZOLVE-AA trial, likely compromising the trial's integrity and further eroding investor confidence in the company's future prospects.
See More
Investor Rights Law Firm Investigates Multiple Companies for Potential Violations
- Legal Investigation Launched: Halper Sadeh LLC is investigating Soleno Therapeutics, Inc. (NASDAQ:SLNO) regarding its sale to Neurocrine Biosciences for $53.00 per share in cash, potentially infringing on shareholder rights.
- Shareholder Rights Protection: The transaction between TopBuild Corp. (NYSE:BLD) and QXO, Inc. allows shareholders to choose between $505.00 in cash or 20.2 shares of QXO common stock per TopBuild share, prompting Halper Sadeh LLC to remind shareholders to consider their rights and options.
- Cash and Stock Transaction: Stellar Bancorp, Inc. (NYSE:STEL) is selling to Prosperity Bancshares, Inc. for 0.3803 shares of Prosperity common stock and $11.36 in cash per Stellar share, with Halper Sadeh LLC potentially seeking increased consideration.
- Legal Fee Arrangement: Halper Sadeh LLC offers legal services on a contingency fee basis, allowing shareholders to consult about their rights without upfront costs, demonstrating a commitment to protecting investor interests.
See More
Reminder of Class Action Lawsuit Against Soleno Therapeutics
- Lawsuit Background: Soleno Therapeutics is facing a class action lawsuit due to safety concerns regarding its DCCR drug, with investors who purchased stock between March 26, 2025, and November 4, 2026, potentially eligible to recover losses.
- Stock Price Volatility: On August 15, 2025, Soleno's stock price dropped 11.98% to $68.09 within two days following a report from Scorpion Capital, indicating market concerns over the drug's safety.
- Further Losses: On September 10, 2025, Soleno disclosed a patient death linked to DCCR, causing the stock to decline by 19.21% to $56.72, exacerbating investor losses.
- Financial Impact: On November 4, 2025, Soleno reported that DCCR's market launch was negatively affected, leading to a 26.59% drop in stock price to $46.87, reflecting a severe loss of investor confidence in the company's future prospects.
See More
