Soleno Therapeutics Faces Class Action for Securities Fraud
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 20 2026
0mins
Should l Buy SLNO?
Source: PRnewswire
- Class Action Filed: Pomerantz LLP has initiated a class action lawsuit against Soleno Therapeutics (NASDAQ:SLNO), alleging securities fraud by the company and certain officers, with investors needing to apply as Lead Plaintiff by May 5, 2026, indicating significant legal risks for the firm.
- Stock Price Volatility: Following a report by Scorpion Capital on August 15, 2025, labeling Soleno's sole product DCCR as overpriced and potentially unsafe for children, the stock price fell by 7.41% to close at $71.63, reflecting market concerns over product safety.
- Patient Death Incident: On September 10, 2025, Soleno disclosed a patient death linked to DCCR, resulting in a 19.21% stock price drop over the next two trading sessions to $56.72, highlighting the legal and reputational risks the company faces.
- Rising Discontinuation Rates: During the earnings call on November 4, 2025, Soleno's CEO revealed an 8% discontinuation rate for DCCR due to adverse effects, stating that the Scorpion report disrupted the product's launch trajectory, leading to a 26.59% stock price decline to $46.87, indicating waning market confidence in the company's future prospects.
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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: 52.720
Low
75.00
Averages
110.50
High
125.00
Current: 52.720
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.
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- Inadequate Safety Disclosure: The complaint claims that Soleno systematically downplayed and concealed significant safety issues during the Phase 3 clinical trial of DCCR, particularly regarding fluid retention in participants, raising serious doubts about the drug's commercial viability.
- Potential Risk Implications: The undisclosed safety risks associated with DCCR could result in higher patient discontinuation rates and prescriber reluctance, adversely affecting market acceptance and the company's reputation in the pharmaceutical industry.
- Investor Action Recommendation: Affected investors are encouraged to apply to be lead plaintiffs by May 5, 2026, to share in any potential recovery, with the law firm operating on a contingency fee basis, thus minimizing financial risk for investors.
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Soleno Therapeutics Securities Class Action Reminder
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- Data Integrity Issues: A report highlighted that Soleno's Phase 3 clinical trials relied on a controversial physician whose data showed irregularities, raising concerns about the integrity of the data and the company's misrepresentation of DCCR's commercial viability.
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See More
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- Concealed Safety Risks: The lawsuit alleges that Soleno misrepresented the safety and commercial viability of its flagship product, VYKAT™ XR (DCCR), for treating Prader-Willi syndrome, leading to significant investor losses due to undisclosed risks.
- Stock Price Plunge: On November 4, 2025, Soleno reported Q3 results admitting disruptions in DCCR's launch, resulting in a 27% stock price drop in one day, reflecting severe market skepticism about its commercial prospects.
- Whistleblower Program: Hagens Berman encourages individuals with non-public information to assist in the investigation, as the new SEC whistleblower program offers rewards of up to 30% of any successful recovery, furthering the inquiry into Soleno's practices.
See More
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See More
Class Action Lawsuits Filed Against Boston Scientific and Others
- Boston Scientific Lawsuit: A class action lawsuit has been filed against Boston Scientific for failing to disclose that its U.S. electrophysiology segment's growth was unsustainable during the period from July 23, 2025, to February 3, 2026, with a lead plaintiff deadline of May 4, 2026.
- Eos Energy Allegations: Eos Energy is accused of not achieving the necessary production ramp-up from November 5, 2025, to February 26, 2026, which has led to significant underestimation of its market prospects, with a deadline for investors to join the lawsuit set for May 5, 2026.
- Soleno Therapeutics Issues: Soleno Therapeutics faces allegations of concealing safety concerns related to its Phase 3 clinical trial for DCCR from March 26 to November 4, 2025, impacting its commercial viability, with a lead plaintiff deadline of May 5, 2026.
- Nektar Therapeutics Lawsuit: Nektar Therapeutics is involved in a class action lawsuit due to non-compliance with trial enrollment standards from February 26 to December 15, 2025, with investors needing to file by May 5, 2026.
See More
Class Action Filed Against Soleno Therapeutics for Securities Violations
- Lawsuit Background: Bronstein, Gewirtz & Grossman LLC has filed a class action lawsuit against Soleno Therapeutics and certain executives, alleging failure to disclose safety concerns related to the DCCR clinical trial from March 26 to November 4, 2025, potentially leading to investor losses.
- Inadequate Safety Disclosure: The complaint claims that Soleno systematically downplayed and concealed significant safety issues during the Phase 3 clinical trial of DCCR, particularly regarding fluid retention in participants, raising serious doubts about the drug's commercial viability.
- Potential Risk Implications: The undisclosed safety risks associated with DCCR could result in higher patient discontinuation rates and prescriber reluctance, adversely affecting market acceptance and the company's reputation in the pharmaceutical industry.
- Investor Action Recommendation: Affected investors are encouraged to apply to be lead plaintiffs by May 5, 2026, to share in any potential recovery, with the law firm operating on a contingency fee basis, thus minimizing financial risk for investors.
See More
Investigation Alerts for Multiple Mergers
- XOMA Acquisition Deal: XOMA Royalty Corporation is set to be acquired by Ligand Pharmaceuticals for $39.00 per share, totaling approximately $739 million; however, this price is below its 52-week high of $42.38, raising concerns among shareholders about the fairness of the transaction.
- Organon Merger Case: Organon & Co. will be acquired by Sun Pharmaceutical for $14.00 per share in cash, with an enterprise valuation of $11.75 billion, and the investigation focuses on whether the Organon Board failed to treat shareholders fairly, potentially impacting shareholder rights.
- RE/MAX Acquisition Proposal: RE/MAX Holdings, Inc. will be acquired by The Real Brokerage, allowing shareholders to choose between 5.152 shares of the new company or $13.80 in cash per share, with investigations into whether the Board failed to handle the transaction fairly, affecting shareholder interests.
- Soleno Acquisition Investigation: Soleno Therapeutics, Inc. will be acquired by Neurocrine Biosciences for $53.00 per share, representing a total transaction value of approximately $2.9 billion, but this price is below its 52-week high of $90.32, raising questions about the Board's fairness in the deal.
See More
Soleno Therapeutics Securities Class Action Reminder
- Lawsuit Notification: Hagens Berman reminds investors of the lead plaintiff deadline for the securities class action against Soleno Therapeutics (NASDAQ: SLNO) on May 5, 2026, urging those who purchased shares between March 26, 2025, and November 4, 2025, and suffered significant losses to file claims.
- Safety Risk Allegations: The lawsuit alleges that Soleno concealed serious safety risks associated with its flagship product, VYKAT™ XR (DCCR), for treating Prader-Willi syndrome, including significant concerns about fluid retention and potential heart failure in children using the drug.
- Data Integrity Issues: A report highlighted that Soleno's Phase 3 clinical trials relied on a controversial physician whose data showed irregularities, raising concerns about the integrity of the data and the company's misrepresentation of DCCR's commercial viability.
- Stock Price Plunge: Following Soleno's admission on November 4, 2025, of disruptions in DCCR's launch trajectory, the stock plummeted 27% in a single day, reflecting the market's strong reaction to the company's financial disclosures and safety concerns.
See More
Soleno Therapeutics Securities Class Action Reminder
- Lawsuit Background: Hagens Berman reminds investors of the pending securities class action against Soleno Therapeutics (NASDAQ:SLNO), with a lead plaintiff deadline of May 5, 2026, for those who purchased shares between March 26 and November 4, 2025.
- Concealed Safety Risks: The lawsuit alleges that Soleno misrepresented the safety and commercial viability of its flagship product, VYKAT™ XR (DCCR), for treating Prader-Willi syndrome, leading to significant investor losses due to undisclosed risks.
- Stock Price Plunge: On November 4, 2025, Soleno reported Q3 results admitting disruptions in DCCR's launch, resulting in a 27% stock price drop in one day, reflecting severe market skepticism about its commercial prospects.
- Whistleblower Program: Hagens Berman encourages individuals with non-public information to assist in the investigation, as the new SEC whistleblower program offers rewards of up to 30% of any successful recovery, furthering the inquiry into Soleno's practices.
See More
Investor Rights Law Firm Investigates Multiple Companies
- Investigation Background: Halper Sadeh LLC is investigating companies including Whitestone REIT, Soleno Therapeutics, Odyssey Marine Exploration, and Avanos Medical for potential violations of federal securities laws and breaches of fiduciary duties, which may impact shareholder rights.
- Whitestone REIT Transaction: Whitestone REIT is being sold to Ares Management Corporation for $19.00 per share, and Halper Sadeh LLC may seek to increase the consideration to ensure shareholders receive fair compensation.
- Soleno Therapeutics Transaction: Soleno Therapeutics, Inc. is being sold for $53.00 per share in cash, and Halper Sadeh LLC encourages shareholders to understand their legal rights, potentially requesting additional disclosures to protect shareholder interests.
- Avanos Medical Transaction: Avanos Medical, Inc. is being sold to affiliates of American Industrial Partners for $25.00 per share, and Halper Sadeh LLC may advocate for higher consideration and other remedies for shareholders.
See More
