Faruqi & Faruqi Investigates Soleno Securities Fraud Claims
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy SLNO?
Source: PRnewswire
- Legal Investigation Initiated: Faruq & Faruq LLP is investigating potential claims against Soleno Therapeutics, particularly for investors who purchased securities between March 26 and November 4, 2025, urging them to seek lead plaintiff status by the May 5, 2026 deadline, which could significantly impact their legal rights.
- Safety Concerns Exposed: The complaint alleges that Soleno and its executives violated federal securities laws by failing to disclose significant safety evidence related to the DCCR clinical trial, resulting in higher risks for investors and potentially affecting the company's future market performance and investor confidence.
- Stock Price Volatility: Following a critical report from Scorpion Capital on August 15, 2025, Soleno's stock price plummeted from $77 to $68, a nearly 12% drop; additionally, after a patient death was disclosed on September 10, the stock fell from $70 to $57, a 19% decline, indicating market concerns about the company's outlook.
- Financial Results Impact: Soleno's Q3 financial results released on November 4, 2025, revealed that the launch trajectory of DCCR was disrupted by the earlier report, leading to fewer patient start forms and increased discontinuations, causing the stock to drop from $64 to $47 in one day, a 27% decline, reflecting severe damage to market confidence in its products.
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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: 52.620
Low
75.00
Averages
110.50
High
125.00
Current: 52.620
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.
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- Safety Risk Allegations: 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 concealed risks.
- Stock Price Plunge: On November 4, 2025, Soleno reported Q3 results, admitting disruptions in DCCR's launch trajectory, resulting in a 27% stock price drop in one day, indicating severe market disappointment regarding the company's future.
- Whistleblower Program: Hagens Berman encourages individuals with non-public information to consider the SEC Whistleblower program, which offers rewards of up to 30% of any successful recovery, thereby aiding the investigation into Soleno's practices.
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- Eos Energy Lawsuit: Eos Energy Enterprises is facing allegations for failing to meet production and capacity utilization targets from November 2025 to February 2026, which could severely undermine investor confidence and negatively impact its stock performance.
- Soleno Therapeutics Risks: Soleno Therapeutics is accused of concealing safety concerns in its DCCR clinical trials, potentially exposing patients to greater risks, which may adversely affect product acceptance and commercial viability, leading to potential investor losses.
- Nektar Therapeutics Trial Issues: Nektar Therapeutics is under scrutiny for not adhering to applicable standards in its REZOLVE-AA trial, which could compromise the integrity of trial results and affect future R&D and market strategies, creating uncertainty for shareholders.
- Driven Brands Financial Errors: Driven Brands is accused of financial reporting errors from 2023 to 2026, resulting in misstatements of cash flows and revenues, which could negatively impact its financial health and investor confidence.
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.
- Safety Risk Allegations: 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 concealed risks.
- Stock Price Plunge: On November 4, 2025, Soleno reported Q3 results, admitting disruptions in DCCR's launch trajectory, resulting in a 27% stock price drop in one day, indicating severe market disappointment regarding the company's future.
- Whistleblower Program: Hagens Berman encourages individuals with non-public information to consider the SEC Whistleblower program, which offers rewards of up to 30% of any successful recovery, thereby aiding the investigation into Soleno's practices.
See More
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- Investigation Focus: Halper Sadeh LLC is investigating Avanos Medical, Inc. (NYSE: AVNS) for potential violations of federal securities laws related to its sale to American Industrial Partners for $25.00 per share in cash, raising concerns about fiduciary duties to shareholders.
- Shareholder Rights: Leggett & Platt, Incorporated (NYSE: LEG) is set to sell to Somnigroup International Inc. for 0.1455 shares of Somnigroup common stock per Leggett share, resulting in Leggett shareholders owning approximately 9% of the combined entity, with Halper Sadeh LLC encouraging shareholders to explore their rights and options.
- Cash Transaction: Soleno Therapeutics, Inc. (NASDAQ: SLNO) plans to sell to Neurocrine Biosciences for $53.00 per share in cash, prompting Halper Sadeh LLC to remind shareholders of their potential legal rights.
- Management Involvement: Forian Inc. (NASDAQ: FORA) is being sold for $2.17 per share in cash to a consortium led by CEO Max Wygod, with Halper Sadeh LLC potentially seeking increased consideration and other remedies to protect shareholder interests.
See More
Investigations into Multiple Medical Company Mergers
- Avanos Medical Acquisition: Avanos Medical is set to be acquired by American Industrial Partners for $25.00 per share in an all-cash deal valued at approximately $1.272 billion, with investigations focusing on whether the board breached fiduciary duties by failing to ensure a fair process for shareholders.
- Leggett & Platt Merger: Leggett & Platt will be acquired by Somnigroup International in an all-stock transaction valued at around $2.5 billion, where shareholders will receive 0.1455 shares of Somnigroup for each share of Leggett & Platt, raising concerns about potential fiduciary breaches by the board.
- Soleno Therapeutics Acquisition: Soleno is to be acquired by Neurocrine Biosciences for $53.00 per share in cash, representing a total equity value of approximately $2.9 billion, with investigations questioning the fairness of the deal given it is below the company's 52-week high of $90.32.
- Forian, Inc. Investigation: Forian will be acquired by an entity affiliated with CEO Max Wygod for $2.17 per share in cash, with investigations looking into whether the board failed to conduct a fair process, potentially impacting shareholder value.
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, 2025, and November 4, 2025, that they must apply to be lead plaintiff by May 5, 2026, or risk losing their right to compensation.
- Lawsuit Background: The lawsuit alleges that Soleno concealed significant safety concerns related to its DCCR drug during clinical trials, resulting in higher safety risks and potential legal repercussions for investors after the drug's commercial launch, thereby 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 in 2017 for the number of securities class action settlements, showcasing its strong reputation in the field.
- Investor Guidance: Investors are advised to carefully select law firms with proven success in securities litigation to ensure effective legal representation in class actions, avoiding firms that merely act as intermediaries, which could impact potential compensation outcomes.
See More
Investor Rights Law Firm Investigates Multiple Companies
- Legal Investigation: Halper Sadeh LLC is investigating companies such as Terns Pharmaceuticals, Inc., Soleno Therapeutics, Inc., and Whitestone REIT for potential violations of federal securities laws or breaches of fiduciary duties, highlighting concerns for investor rights.
- Transaction Price Analysis: Both Terns Pharmaceuticals and Soleno Therapeutics are being acquired at $53.00 per share, while Whitestone REIT is being sold for $19.00 per share or unit, suggesting these prices may not reflect the companies' true values, potentially leading to investor losses.
- Shareholder Rights Protection: Halper Sadeh LLC encourages shareholders to contact them to discuss their rights and options, committing to handle related matters at no upfront cost, aiming to provide legal support for affected investors.
- Legal Fee Arrangement: The firm states it will operate on a contingency fee basis, meaning shareholders will not be responsible for upfront legal fees and expenses, thereby reducing the legal risk for investors.
See More
