Class Action Lawsuit Filed Against Soleno Therapeutics Over DCCR Disclosures
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy SLNO?
Source: Globenewswire
- Lawsuit Background: 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 disappointing report on DCCR (VYKAT™ XR) that triggered a significant selloff.
- Stock Price Reaction: The company's shares plummeted by 26% on the day of the negative announcement, indicating a severe loss of investor confidence in the safety and efficacy of DCCR, which has critical implications for its market viability.
- Safety Concerns: The lawsuit alleges that Soleno misrepresented safety issues related to DCCR, including significant risks of fluid retention in trial participants, which could materially undermine the drug's commercial prospects and lead to undisclosed adverse events.
- Market Trust Crisis: Following critical scrutiny from short seller Scorpion Capital, investor confidence in DCCR's market potential has drastically declined, resulting in a nearly 40% drop in Soleno's stock price since August 2025, highlighting a significant trust crisis in the company's disclosures.
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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: 36.990
Low
75.00
Averages
110.50
High
125.00
Current: 36.990
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 Securities Fraud Class Action Lawsuit
- Lawsuit Background: On April 2, 2026, Kessler Topaz Meltzer & Check, LLP announced a securities fraud class action lawsuit against Soleno Therapeutics (NASDAQ:SLNO) for stock purchases between March 26 and November 4, 2025, highlighting serious investor concerns regarding the company's financial transparency.
- Safety Concerns Disclosure: The lawsuit alleges that Soleno concealed significant safety evidence related to its DCCR drug during Phase 3 clinical trials, particularly issues of fluid retention in trial participants, raising doubts about the drug's commercial viability and damaging the company's reputation.
- Stock Price Plunge: Following the release of its third-quarter financial results on November 4, 2025, Soleno's stock price fell over 26% due to negative impacts from a report by Scorpion Capital, indicating a significant decline in market confidence regarding the company's future prospects.
- Investor Action: Soleno investors may seek to be appointed as lead plaintiffs in the class action by May 5, 2026, representing all affected investors, reflecting heightened investor scrutiny on corporate governance and legal compliance.
See More
Class Action Lawsuit Filed Against Soleno Therapeutics Over DCCR Disclosures
- Lawsuit Background: 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 disappointing report on DCCR (VYKAT™ XR) that triggered a significant selloff.
- Stock Price Reaction: The company's shares plummeted by 26% on the day of the negative announcement, indicating a severe loss of investor confidence in the safety and efficacy of DCCR, which has critical implications for its market viability.
- Safety Concerns: The lawsuit alleges that Soleno misrepresented safety issues related to DCCR, including significant risks of fluid retention in trial participants, which could materially undermine the drug's commercial prospects and lead to undisclosed adverse events.
- Market Trust Crisis: Following critical scrutiny from short seller Scorpion Capital, investor confidence in DCCR's market potential has drastically declined, resulting in a nearly 40% drop in Soleno's stock price since August 2025, highlighting a significant trust crisis in the company's disclosures.
See More
Soleno Therapeutics Securities Lawsuit Reminder for Investors
- Lawsuit Deadline: ClaimsFiler reminds investors that they must file lead plaintiff applications by May 5, 2026, for shares purchased between March 26, 2025, and November 4, 2025, highlighting the legal risks surrounding Soleno Therapeutics.
- Legal Allegations Overview: Soleno and certain executives are accused of failing to disclose critical information during the class period, violating federal securities laws, particularly regarding undisclosed safety concerns related to their only commercial product, DCCR, which could expose investors to greater risks.
- Safety Concerns: The lawsuit alleges that DCCR's clinical trials minimized significant safety issues, including excessive fluid retention among participants, raising doubts about the drug's commercial viability and potentially damaging the company's market performance and reputation.
- Investor Support Services: ClaimsFiler offers a free shareholder information service to assist investors in understanding securities class action lawsuits, ensuring they can submit claims in a timely manner, reflecting a commitment to protecting investor rights.
See More
Soleno Therapeutics Securities Class Action Reminder
- Lawsuit Deadline: Soleno Therapeutics has reminded investors that May 5, 2026, is the deadline to apply for lead plaintiff status in a federal securities class action, emphasizing the urgency for investors to act to protect their rights.
- Safety Allegations: The lawsuit alleges that Soleno concealed significant safety concerns related to its DCCR (Vykat XR) clinical trial, particularly issues of fluid retention in participants, which could materially diminish the drug's commercial viability and expose investors to undisclosed risks.
- Stock Price Volatility: Following a report from Scorpion Capital on August 15, 2025, labeling DCCR as overpriced and potentially unsafe, Soleno's stock plummeted by 7.41%, and after a patient death was reported on September 10, the stock fell another 14.53%, indicating severe market concerns regarding the drug's safety.
- Rising Discontinuation Rates: During the earnings call on November 4, 2025, Soleno's CEO disclosed an 8% discontinuation rate for DCCR due to adverse effects, acknowledging that the short seller report disrupted the drug's launch trajectory, leading to a staggering 26.59% drop in stock price the following day, reflecting investor pessimism about future sales prospects.
See More
Soleno Therapeutics Faces Securities Class Action Lawsuit
- Lawsuit Background: Soleno Therapeutics is facing a securities class action lawsuit following a disappointing report on its DCCR drug (trademarked as VYKAT™ XR) released on November 5, 2025, representing investors who purchased common stock between March 26 and November 4, 2025, indicating strong investor dissatisfaction with the company's transparency.
- Stock Price Plunge: Following the lawsuit announcement, Soleno's stock price plummeted by 26% on the same day, reflecting severe market skepticism regarding the company's safety and efficacy claims, which significantly eroded investor confidence and exacerbated the financial pressures faced by the company.
- Safety Concerns: The lawsuit alleges that Soleno systematically downplayed and concealed significant safety risks associated with DCCR during clinical trials, particularly issues related to fluid retention in trial participants, which could materially impact the drug's commercial viability.
- Market Reaction: On August 15, 2025, activist short seller Scorpion Capital raised concerns about Soleno's disclosures, noting a surge in reports of children hospitalized after using the drug, leading to profound investor worries about DCCR's market acceptance and future sales prospects.
See More
Soleno Therapeutics Faces Securities Fraud Class Action Lawsuit
- Lawsuit Background: Soleno Therapeutics (NASDAQ: SLNO) is facing a securities fraud class action lawsuit for the period between March 26, 2025, and November 4, 2025, with investors having until May 5, 2026, to seek lead plaintiff status, indicating significant legal risks and potential financial liabilities for the company.
- Key Allegations: The lawsuit alleges that Soleno made materially false statements and omissions regarding the safety of its DCCR drug in Phase 3 clinical trials, particularly failing to disclose serious safety concerns, which could undermine investor confidence in the company's future prospects.
- Stock Price Impact: Following the financial results announcement on November 4, 2025, Soleno's stock price plummeted over 26% due to market concerns regarding the DCCR drug, reflecting a pessimistic sentiment among investors about the company's outlook.
- Investor Action: Affected investors are encouraged to contact Kessler Topaz Meltzer & Check, LLP for free legal consultations, highlighting the potential financial responsibilities the company may face in ongoing litigation and the losses investors could incur.
See More
Soleno Therapeutics Faces Securities Fraud Class Action Lawsuit
- Lawsuit Background: On April 2, 2026, Kessler Topaz Meltzer & Check, LLP announced a securities fraud class action lawsuit against Soleno Therapeutics (NASDAQ:SLNO) for stock purchases between March 26 and November 4, 2025, highlighting serious investor concerns regarding the company's financial transparency.
- Safety Concerns Disclosure: The lawsuit alleges that Soleno concealed significant safety evidence related to its DCCR drug during Phase 3 clinical trials, particularly issues of fluid retention in trial participants, raising doubts about the drug's commercial viability and damaging the company's reputation.
- Stock Price Plunge: Following the release of its third-quarter financial results on November 4, 2025, Soleno's stock price fell over 26% due to negative impacts from a report by Scorpion Capital, indicating a significant decline in market confidence regarding the company's future prospects.
- Investor Action: Soleno investors may seek to be appointed as lead plaintiffs in the class action by May 5, 2026, representing all affected investors, reflecting heightened investor scrutiny on corporate governance and legal compliance.
See More
Class Action Lawsuit Filed Against Soleno Therapeutics Over DCCR Disclosures
- Lawsuit Background: 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 disappointing report on DCCR (VYKAT™ XR) that triggered a significant selloff.
- Stock Price Reaction: The company's shares plummeted by 26% on the day of the negative announcement, indicating a severe loss of investor confidence in the safety and efficacy of DCCR, which has critical implications for its market viability.
- Safety Concerns: The lawsuit alleges that Soleno misrepresented safety issues related to DCCR, including significant risks of fluid retention in trial participants, which could materially undermine the drug's commercial prospects and lead to undisclosed adverse events.
- Market Trust Crisis: Following critical scrutiny from short seller Scorpion Capital, investor confidence in DCCR's market potential has drastically declined, resulting in a nearly 40% drop in Soleno's stock price since August 2025, highlighting a significant trust crisis in the company's disclosures.
See More
Soleno Therapeutics Securities Lawsuit Reminder for Investors
- Lawsuit Deadline: ClaimsFiler reminds investors that they must file lead plaintiff applications by May 5, 2026, for shares purchased between March 26, 2025, and November 4, 2025, highlighting the legal risks surrounding Soleno Therapeutics.
- Legal Allegations Overview: Soleno and certain executives are accused of failing to disclose critical information during the class period, violating federal securities laws, particularly regarding undisclosed safety concerns related to their only commercial product, DCCR, which could expose investors to greater risks.
- Safety Concerns: The lawsuit alleges that DCCR's clinical trials minimized significant safety issues, including excessive fluid retention among participants, raising doubts about the drug's commercial viability and potentially damaging the company's market performance and reputation.
- Investor Support Services: ClaimsFiler offers a free shareholder information service to assist investors in understanding securities class action lawsuits, ensuring they can submit claims in a timely manner, reflecting a commitment to protecting investor rights.
See More
Soleno Therapeutics Securities Class Action Reminder
- Lawsuit Deadline: Soleno Therapeutics has reminded investors that May 5, 2026, is the deadline to apply for lead plaintiff status in a federal securities class action, emphasizing the urgency for investors to act to protect their rights.
- Safety Allegations: The lawsuit alleges that Soleno concealed significant safety concerns related to its DCCR (Vykat XR) clinical trial, particularly issues of fluid retention in participants, which could materially diminish the drug's commercial viability and expose investors to undisclosed risks.
- Stock Price Volatility: Following a report from Scorpion Capital on August 15, 2025, labeling DCCR as overpriced and potentially unsafe, Soleno's stock plummeted by 7.41%, and after a patient death was reported on September 10, the stock fell another 14.53%, indicating severe market concerns regarding the drug's safety.
- Rising Discontinuation Rates: During the earnings call on November 4, 2025, Soleno's CEO disclosed an 8% discontinuation rate for DCCR due to adverse effects, acknowledging that the short seller report disrupted the drug's launch trajectory, leading to a staggering 26.59% drop in stock price the following day, reflecting investor pessimism about future sales prospects.
See More
Soleno Therapeutics Faces Securities Class Action Lawsuit
- Lawsuit Background: Soleno Therapeutics is facing a securities class action lawsuit following a disappointing report on its DCCR drug (trademarked as VYKAT™ XR) released on November 5, 2025, representing investors who purchased common stock between March 26 and November 4, 2025, indicating strong investor dissatisfaction with the company's transparency.
- Stock Price Plunge: Following the lawsuit announcement, Soleno's stock price plummeted by 26% on the same day, reflecting severe market skepticism regarding the company's safety and efficacy claims, which significantly eroded investor confidence and exacerbated the financial pressures faced by the company.
- Safety Concerns: The lawsuit alleges that Soleno systematically downplayed and concealed significant safety risks associated with DCCR during clinical trials, particularly issues related to fluid retention in trial participants, which could materially impact the drug's commercial viability.
- Market Reaction: On August 15, 2025, activist short seller Scorpion Capital raised concerns about Soleno's disclosures, noting a surge in reports of children hospitalized after using the drug, leading to profound investor worries about DCCR's market acceptance and future sales prospects.
See More
Soleno Therapeutics Faces Securities Fraud Class Action Lawsuit
- Lawsuit Background: Soleno Therapeutics (NASDAQ: SLNO) is facing a securities fraud class action lawsuit for the period between March 26, 2025, and November 4, 2025, with investors having until May 5, 2026, to seek lead plaintiff status, indicating significant legal risks and potential financial liabilities for the company.
- Key Allegations: The lawsuit alleges that Soleno made materially false statements and omissions regarding the safety of its DCCR drug in Phase 3 clinical trials, particularly failing to disclose serious safety concerns, which could undermine investor confidence in the company's future prospects.
- Stock Price Impact: Following the financial results announcement on November 4, 2025, Soleno's stock price plummeted over 26% due to market concerns regarding the DCCR drug, reflecting a pessimistic sentiment among investors about the company's outlook.
- Investor Action: Affected investors are encouraged to contact Kessler Topaz Meltzer & Check, LLP for free legal consultations, highlighting the potential financial responsibilities the company may face in ongoing litigation and the losses investors could incur.
See More
