Faruqi & Faruqi Investigates Soleno Securities Fraud Claims
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy SLNO?
Source: Globenewswire
- Legal Investigation Launched: Faruq & Faruq LLP is investigating potential securities fraud claims against Soleno Therapeutics (NASDAQ: SLNO), specifically urging investors who purchased securities between March 26, 2025, and November 4, 2025, to seek lead plaintiff status in a class action by the May 5, 2026 deadline.
- Safety Concerns Exposed: The complaint alleges that Soleno and its executives systematically downplayed and concealed significant safety concerns related to the DCCR Phase 3 clinical trial, including issues of fluid retention in participants, which raises serious questions about the drug's commercial viability and future market performance.
- Stock Price Volatility: Following a critical report from Scorpion Capital on August 15, 2025, which raised major concerns about the drug's safety and efficacy, Soleno's stock price plummeted nearly 12% from $77 to $68 over two days; additionally, after the Q3 financial results were released on November 4, 2025, the stock fell 27% from $64 to $47, reflecting market pessimism about the company's outlook.
- Investor Rights Protection: Faruq & Faruq LLP encourages anyone with information regarding Soleno's conduct, including whistleblowers and former employees, to contact the firm directly to better protect investor rights and advance the case.
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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: 39.680
Low
75.00
Averages
110.50
High
125.00
Current: 39.680
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.
- Legal Investigation Launched: Faruq & Faruq LLP is investigating potential securities fraud claims against Soleno Therapeutics (NASDAQ: SLNO), specifically urging investors who purchased securities between March 26, 2025, and November 4, 2025, to seek lead plaintiff status in a class action by the May 5, 2026 deadline.
- Safety Concerns Exposed: The complaint alleges that Soleno and its executives systematically downplayed and concealed significant safety concerns related to the DCCR Phase 3 clinical trial, including issues of fluid retention in participants, which raises serious questions about the drug's commercial viability and future market performance.
- Stock Price Volatility: Following a critical report from Scorpion Capital on August 15, 2025, which raised major concerns about the drug's safety and efficacy, Soleno's stock price plummeted nearly 12% from $77 to $68 over two days; additionally, after the Q3 financial results were released on November 4, 2025, the stock fell 27% from $64 to $47, reflecting market pessimism about the company's outlook.
- Investor Rights Protection: Faruq & Faruq LLP encourages anyone with information regarding Soleno's conduct, including whistleblowers and former employees, to contact the firm directly to better protect investor rights and advance the case.
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- Lawsuit Background: Bronstein, Gewirtz & Grossman LLC has filed a class action lawsuit against Soleno Therapeutics and its executives, seeking damages for investors who purchased securities between March 26, 2025, and November 4, 2025, highlighting investor concerns over potential risks associated with the company.
- Safety Concerns Allegations: The complaint alleges that Soleno failed to disclose significant safety concerns related to its DCCR clinical trial, including issues of fluid retention in participants, indicating that the safety risks of the drug were severely underestimated, potentially leading to greater losses for investors.
- Declining Commercial Viability: Due to undisclosed safety risks, the commercial viability of DCCR is questioned, which may result in higher patient discontinuation rates, reduced prescriber willingness, and potential regulatory actions, further impacting the company's market performance and investor confidence.
- Investor Action Recommendations: Affected investors must apply to be lead plaintiffs by May 5, 2026, to participate in any recovery, with the law firm promising to charge fees only upon success, thereby reducing the financial burden on investors.
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- 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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- Class Action Initiation: Soleno Therapeutics (NASDAQ: SLNO) faces a class action lawsuit for failing to disclose safety concerns regarding its DCCR drug, with investors having until May 5, 2026, to apply as lead plaintiffs, indicating significant legal and reputational risks for the company.
- Stock Price Volatility: Following a critical report from Scorpion Capital in August 2025, Soleno's stock price dropped nearly 12% over two days, and after a patient death was reported in September, the stock fell approximately 19%, reflecting severe market concerns about the safety of its product.
- Financial Impact: On November 4, 2025, Soleno's financial results revealed that the launch of DCCR was disrupted by the negative report, leading to a decrease in patient start forms and increased discontinuation rates, further exacerbating investor confidence issues regarding the company's future.
- Legal Representation Background: Robbins Geller Rudman & Dowd LLP, representing the plaintiffs, has recovered $8.4 billion for investors over the past five years, showcasing its strong capabilities in securities fraud and shareholder rights litigation, which may significantly influence the legal outcomes for Soleno.
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- Trial Pause Reason: Aardvark Therapeutics announced a voluntary pause of its ARD-101 trial for Prader-Willi Syndrome due to cardiac observations in a healthy volunteer study, with data release now expected to be delayed until Q3 2026, potentially impacting the company's future R&D trajectory.
- Severe Market Reaction: Following the trial pause announcement, Aardvark's shares plunged 53% in after-hours trading, reflecting extreme investor concern over the company's outlook, which may lead to financing challenges and diminished market confidence.
- Competitor Dynamics: In contrast, Soleno Therapeutics' VYKAT XR has become the first FDA-approved treatment for hyperphagia in Prader-Willi Syndrome, despite facing short-selling pressure and safety concerns from Scorpion Capital, highlighting the intense competition in the market.
- Industry-Wide Challenges: Against the backdrop of Aardvark's trial pause, Acadia Pharmaceuticals also halted development of its intranasal Carbetocin, indicating that the challenges and risks associated with successful R&D in the Prader-Willi Syndrome treatment space are increasing, which could affect the overall investment attractiveness of the sector.
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- Executive Change: Soleno Therapeutics announced the appointment of Jennifer Fulk as CFO, succeeding James Mackaness, who will retire by the end of Q1 and serve as a consultant to ensure a smooth transition.
- Experienced Leadership: Fulk brings over 20 years of experience in public company financial strategy, investor relations, financial reporting, and operational efficiency, including 15 years at Eli Lilly, which is expected to provide Soleno with fresh insights and expertise.
- Market Reaction: Following the announcement, Soleno Therapeutics' stock rose 1.19% in premarket trading to $41.5, indicating investor confidence in the new CFO.
- Future Outlook: Soleno aims to initiate 1,000 new VYKAT XR patient start forms in the next 9-12 months while expanding into new rare disease indications, reflecting the company's proactive strategy for growth and innovation.
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