Soleno Therapeutics Faces Class Action Lawsuit Over Safety Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy SLNO?
Source: PRnewswire
- Class Action Initiation: Soleno Therapeutics is facing a class action lawsuit for failing to disclose safety risks associated with its DCCR drug during the period from March 26 to November 4, 2025, with investors having until May 5, 2026, to apply as lead plaintiffs, indicating significant legal risks for the company.
- Safety Concerns Uncovered: The lawsuit alleges that Soleno concealed serious safety issues during clinical trials, including fluid retention in participants, which has severely undermined investor confidence in the company's future prospects.
- Stock Price Volatility: Following a critical report from Scorpion Capital in August 2025, Soleno's stock price dropped nearly 12% over two trading days, and after a patient death was reported in September, the stock fell approximately 19%, reflecting a drastic decline in market trust in its products.
- Severe Legal Consequences: In November 2025, Soleno acknowledged in its financial report that the launch of DCCR was disrupted, with a decrease in patient start forms and increased discontinuation rates, leading to a further 27% drop in stock price over two days, highlighting the profound impact of legal and market pressures on the company's future growth.
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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
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
- 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.
See More
Investigation Launched into Soleno Therapeutics' Securities Violations
- 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.
See More
Securities Class Action Filed Against Soleno Therapeutics
- 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.
See More
Class Action Lawsuit Filed Against Soleno Therapeutics
- 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.
See More
Class Action Reminder for Soleno Therapeutics Shareholders
- Lawsuit Background: Robbins LLP reminds all shareholders who purchased Soleno Therapeutics (NASDAQ:SLNO) stock between March 26, 2025, and November 4, 2025, that a class action has been filed, alleging the company failed to disclose safety concerns regarding the DCCR clinical trial, potentially leading to significant investor losses.
- Safety Concerns Disclosure: The lawsuit alleges that Soleno concealed significant safety issues related to DCCR during its Phase 3 clinical trial, including fluid retention in participants, which could materially lower the drug's commercial viability and affect patient willingness to use it.
- Stock Price Volatility: Following the release of a report by Scorpion Capital on August 15, 2025, detailing issues with Soleno's clinical trials, the stock price declined nearly 12% over two trading days; additionally, after a patient death linked to DCCR was reported on September 10, 2025, the stock fell nearly 19% in two days.
- Financial Impact: On November 4, 2025, Soleno reported its third-quarter financial results, with the CEO stating that the Scorpion report caused a
See More
Class Action Lawsuit Announced for Soleno Therapeutics
- Class Action Initiation: Rosen Law Firm has announced a class action lawsuit on behalf of Soleno Therapeutics (NASDAQ:SLNO) stock purchasers between March 26 and November 4, 2025, indicating potential investor losses due to undisclosed risks.
- Compensation Structure: Participants in the class action may receive compensation without any out-of-pocket fees, reflecting the law firm's commitment to protecting investor rights and interests in the face of potential financial harm.
- Safety Concerns Disclosure: The lawsuit alleges that Soleno failed to disclose significant safety concerns related to its DCCR drug during clinical trials, which could lead to higher risks for investors post-launch, thereby impacting the company's reputation and future market performance.
- Law Firm Credentials: Rosen Law Firm is recognized for its successful track record in securities class actions, having recovered over $438 million for investors in 2019 alone, showcasing its strength and experience in handling similar cases.
See More
Soleno Therapeutics Faces Class Action Lawsuit
- 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.
See More
Investigation Launched into Soleno Therapeutics' Securities Violations
- 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.
See More
Securities Class Action Filed Against Soleno Therapeutics
- 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.
See More
Class Action Lawsuit Filed Against Soleno Therapeutics
- 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.
See More
Class Action Reminder for Soleno Therapeutics Shareholders
- Lawsuit Background: Robbins LLP reminds all shareholders who purchased Soleno Therapeutics (NASDAQ:SLNO) stock between March 26, 2025, and November 4, 2025, that a class action has been filed, alleging the company failed to disclose safety concerns regarding the DCCR clinical trial, potentially leading to significant investor losses.
- Safety Concerns Disclosure: The lawsuit alleges that Soleno concealed significant safety issues related to DCCR during its Phase 3 clinical trial, including fluid retention in participants, which could materially lower the drug's commercial viability and affect patient willingness to use it.
- Stock Price Volatility: Following the release of a report by Scorpion Capital on August 15, 2025, detailing issues with Soleno's clinical trials, the stock price declined nearly 12% over two trading days; additionally, after a patient death linked to DCCR was reported on September 10, 2025, the stock fell nearly 19% in two days.
- Financial Impact: On November 4, 2025, Soleno reported its third-quarter financial results, with the CEO stating that the Scorpion report caused a
See More
Class Action Lawsuit Announced for Soleno Therapeutics
- Class Action Initiation: Rosen Law Firm has announced a class action lawsuit on behalf of Soleno Therapeutics (NASDAQ:SLNO) stock purchasers between March 26 and November 4, 2025, indicating potential investor losses due to undisclosed risks.
- Compensation Structure: Participants in the class action may receive compensation without any out-of-pocket fees, reflecting the law firm's commitment to protecting investor rights and interests in the face of potential financial harm.
- Safety Concerns Disclosure: The lawsuit alleges that Soleno failed to disclose significant safety concerns related to its DCCR drug during clinical trials, which could lead to higher risks for investors post-launch, thereby impacting the company's reputation and future market performance.
- Law Firm Credentials: Rosen Law Firm is recognized for its successful track record in securities class actions, having recovered over $438 million for investors in 2019 alone, showcasing its strength and experience in handling similar cases.
See More
