Soleno Therapeutics Faces Class Action Over DCCR Safety Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 07 2026
0mins
Should l Buy SLNO?
Source: PRnewswire
Soleno Therapeutics Inc. has seen its stock price drop by 7.68%, hitting a 5-day low amid ongoing legal troubles.
A securities class action lawsuit has been filed against Soleno, alleging that the company downplayed significant safety risks associated with its DCCR drug (VYKAT™ XR) during clinical trials. This lawsuit follows a previous report that caused a 26% drop in stock price, raising concerns about the drug's commercial viability and investor confidence. The lawsuit claims that these actions have led to substantial investor losses and could have serious implications for the company's future.
The ongoing legal challenges highlight the potential financial repercussions for Soleno and the erosion of market confidence in its products. Investors are urged to stay informed about the developments in this case as it may affect the company's stock performance.
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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: 30.440
Low
75.00
Averages
110.50
High
125.00
Current: 30.440
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.
Class Action Notice for Soleno Therapeutics Investors
- Class Action Notice: Rosen Law Firm reminds investors who purchased Soleno Therapeutics (NASDAQ:SLNO) common stock between March 26 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 concerns regarding its DCCR drug during clinical trials, resulting in greater safety risks and diminished commercial viability, adversely affecting investors' interests.
- Law Firm's Advantage: Rosen Law Firm specializes in securities class actions and has achieved the largest settlement against a Chinese company, demonstrating its success and resources in this field, urging investors to select counsel with a proven track record.
- Investor Rights: Investors can join the class action without any out-of-pocket fees and can still share in potential future recoveries even if they do not serve as lead plaintiffs, ensuring their rights are protected.
See More
Soleno Therapeutics Faces Class Action Lawsuit Over Alleged Securities Fraud
- Lawsuit Background: Kahn Swick & Foti LLC has initiated a class action lawsuit against Soleno Therapeutics on behalf of investors, alleging that the company failed to disclose critical information between March and November 2025, resulting in investor losses.
- Details of Allegations: The complaint claims that Soleno and its executives did not adequately disclose potential safety concerns during the DCCR clinical trial, including excessive fluid retention among participants, which significantly undermined the commercial viability of DCCR.
- Investor Actions: Affected investors have until May 5, 2026, to request to be appointed as lead plaintiff in the lawsuit, although they do not need to serve in this capacity to share in any potential recovery.
- Law Firm Background: Kahn Swick & Foti is recognized as one of the premier securities litigation law firms in the U.S., ranked among the top ten nationally based on total settlement value, focusing on recovering losses for investors due to corporate fraud.
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, following a 26% stock price drop triggered by disappointing DCCR (VYKAT™ XR) information released on November 5, 2025.
- Safety Controversy: The lawsuit alleges that Soleno misrepresented the safety, efficacy, and commercial prospects of DCCR, particularly failing to disclose significant safety concerns related to fluid retention in clinical trial participants, exposing investors to greater risks than acknowledged.
- Market Reaction: Following questions raised by activist short seller Scorpion Capital on August 15, 2025, Soleno's stock price has plummeted nearly 40% since August 14, indicating a severe loss of market confidence in its commercial viability.
- Investigation Progress: Hagens Berman is investigating whether Soleno violated federal securities laws and is urging investors who suffered significant losses to submit their information to support potential legal actions.
See More
Class Action Lawsuit Filed Against Soleno Therapeutics
- Class Action Initiation: Pomerantz LLP has announced a class action lawsuit against Soleno Therapeutics, alleging securities fraud and other unlawful business practices, with investors needing to apply as Lead Plaintiff by May 5, 2026, which could significantly impact the company's reputation and stock price.
- Stock Price Volatility: On August 15, 2025, Scorpion Capital published a report labeling Soleno's sole product, DCCR, as overpriced and potentially unsafe for children, resulting in a 7.41% drop in stock price to $71.63, indicating market concerns over product safety.
- Patient Death Incident: On September 10, 2025, Soleno disclosed a patient death linked to DCCR, causing the stock price to plummet 19.21% over two trading sessions to $56.72, exacerbating investor confidence issues regarding the company's product.
- Rising Discontinuation Rates: During the earnings call on November 4, 2025, Soleno revealed an 8% discontinuation rate for DCCR due to adverse effects, with the CEO noting that the Scorpion report caused a “disruption” in product launch, leading to a further 26.59% drop in stock price to $46.87, reflecting a pessimistic outlook on the company's future.
See More
Soleno Therapeutics Class Action Reminder
- Class Action Notice: Rosen Law Firm reminds investors who purchased Soleno Therapeutics (NASDAQ: SLNO) common stock between March 26 and November 4, 2025, to apply as lead plaintiffs by May 5, 2026, or risk losing compensation eligibility.
- Lawsuit Background: The lawsuit alleges that Soleno concealed significant safety concerns regarding its DCCR drug during clinical trials, including serious side effects like fluid retention, which led to investor losses when the truth emerged, adversely affecting the company's commercial viability.
- Law Firm Credentials: Rosen Law Firm specializes in securities class actions and recovered over $438 million for investors in 2019 alone, being ranked first by ISS Securities Class Action Services in 2017, demonstrating its strong track record and expertise in this field.
- Investor Guidance: Investors are advised to carefully select qualified counsel with proven success in securities litigation, avoiding firms that merely act as intermediaries, to ensure effective legal representation in the class action.
See More
Soleno Therapeutics Faces Class Action Lawsuit Over DCCR Disclosures
- Class Action Initiated: A securities class action lawsuit has been filed against Soleno Therapeutics (NASDAQ:SLNO) to represent investors who purchased common stock between March 26 and November 4, 2025, following a 26% drop in share price triggered by disappointing DCCR drug information released on November 5.
- Safety Concerns Uncovered: The lawsuit alleges that Soleno misrepresented safety issues related to DCCR, particularly concerning fluid retention risks, misleading investors about the drug's commercial viability and impacting the company's market performance.
- Severe Market Reaction: Since August 15, 2025, Soleno's stock has plummeted nearly 40%, primarily due to concerns raised by activist short seller Scorpion Capital regarding the drug's potential market withdrawal risks, exacerbating investor panic.
- Potential Legal Consequences: Hagens Berman is investigating whether Soleno violated federal securities laws, and if confirmed, the company could face severe legal repercussions and financial losses as a result of misleading investors.
See More
Class Action Notice for Soleno Therapeutics Investors
- Class Action Notice: Rosen Law Firm reminds investors who purchased Soleno Therapeutics (NASDAQ:SLNO) common stock between March 26 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 concerns regarding its DCCR drug during clinical trials, resulting in greater safety risks and diminished commercial viability, adversely affecting investors' interests.
- Law Firm's Advantage: Rosen Law Firm specializes in securities class actions and has achieved the largest settlement against a Chinese company, demonstrating its success and resources in this field, urging investors to select counsel with a proven track record.
- Investor Rights: Investors can join the class action without any out-of-pocket fees and can still share in potential future recoveries even if they do not serve as lead plaintiffs, ensuring their rights are protected.
See More
Soleno Therapeutics Faces Class Action Lawsuit Over Alleged Securities Fraud
- Lawsuit Background: Kahn Swick & Foti LLC has initiated a class action lawsuit against Soleno Therapeutics on behalf of investors, alleging that the company failed to disclose critical information between March and November 2025, resulting in investor losses.
- Details of Allegations: The complaint claims that Soleno and its executives did not adequately disclose potential safety concerns during the DCCR clinical trial, including excessive fluid retention among participants, which significantly undermined the commercial viability of DCCR.
- Investor Actions: Affected investors have until May 5, 2026, to request to be appointed as lead plaintiff in the lawsuit, although they do not need to serve in this capacity to share in any potential recovery.
- Law Firm Background: Kahn Swick & Foti is recognized as one of the premier securities litigation law firms in the U.S., ranked among the top ten nationally based on total settlement value, focusing on recovering losses for investors due to corporate fraud.
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, following a 26% stock price drop triggered by disappointing DCCR (VYKAT™ XR) information released on November 5, 2025.
- Safety Controversy: The lawsuit alleges that Soleno misrepresented the safety, efficacy, and commercial prospects of DCCR, particularly failing to disclose significant safety concerns related to fluid retention in clinical trial participants, exposing investors to greater risks than acknowledged.
- Market Reaction: Following questions raised by activist short seller Scorpion Capital on August 15, 2025, Soleno's stock price has plummeted nearly 40% since August 14, indicating a severe loss of market confidence in its commercial viability.
- Investigation Progress: Hagens Berman is investigating whether Soleno violated federal securities laws and is urging investors who suffered significant losses to submit their information to support potential legal actions.
See More
Class Action Lawsuit Filed Against Soleno Therapeutics
- Class Action Initiation: Pomerantz LLP has announced a class action lawsuit against Soleno Therapeutics, alleging securities fraud and other unlawful business practices, with investors needing to apply as Lead Plaintiff by May 5, 2026, which could significantly impact the company's reputation and stock price.
- Stock Price Volatility: On August 15, 2025, Scorpion Capital published a report labeling Soleno's sole product, DCCR, as overpriced and potentially unsafe for children, resulting in a 7.41% drop in stock price to $71.63, indicating market concerns over product safety.
- Patient Death Incident: On September 10, 2025, Soleno disclosed a patient death linked to DCCR, causing the stock price to plummet 19.21% over two trading sessions to $56.72, exacerbating investor confidence issues regarding the company's product.
- Rising Discontinuation Rates: During the earnings call on November 4, 2025, Soleno revealed an 8% discontinuation rate for DCCR due to adverse effects, with the CEO noting that the Scorpion report caused a “disruption” in product launch, leading to a further 26.59% drop in stock price to $46.87, reflecting a pessimistic outlook on the company's future.
See More
Soleno Therapeutics Class Action Reminder
- Class Action Notice: Rosen Law Firm reminds investors who purchased Soleno Therapeutics (NASDAQ: SLNO) common stock between March 26 and November 4, 2025, to apply as lead plaintiffs by May 5, 2026, or risk losing compensation eligibility.
- Lawsuit Background: The lawsuit alleges that Soleno concealed significant safety concerns regarding its DCCR drug during clinical trials, including serious side effects like fluid retention, which led to investor losses when the truth emerged, adversely affecting the company's commercial viability.
- Law Firm Credentials: Rosen Law Firm specializes in securities class actions and recovered over $438 million for investors in 2019 alone, being ranked first by ISS Securities Class Action Services in 2017, demonstrating its strong track record and expertise in this field.
- Investor Guidance: Investors are advised to carefully select qualified counsel with proven success in securities litigation, avoiding firms that merely act as intermediaries, to ensure effective legal representation in the class action.
See More
Soleno Therapeutics Faces Class Action Lawsuit Over DCCR Disclosures
- Class Action Initiated: A securities class action lawsuit has been filed against Soleno Therapeutics (NASDAQ:SLNO) to represent investors who purchased common stock between March 26 and November 4, 2025, following a 26% drop in share price triggered by disappointing DCCR drug information released on November 5.
- Safety Concerns Uncovered: The lawsuit alleges that Soleno misrepresented safety issues related to DCCR, particularly concerning fluid retention risks, misleading investors about the drug's commercial viability and impacting the company's market performance.
- Severe Market Reaction: Since August 15, 2025, Soleno's stock has plummeted nearly 40%, primarily due to concerns raised by activist short seller Scorpion Capital regarding the drug's potential market withdrawal risks, exacerbating investor panic.
- Potential Legal Consequences: Hagens Berman is investigating whether Soleno violated federal securities laws, and if confirmed, the company could face severe legal repercussions and financial losses as a result of misleading investors.
See More
