Soleno Therapeutics Class Action Reminder for Investors
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy SLNO?
Source: Globenewswire
- Lawsuit Background: Soleno Therapeutics faces a class action lawsuit due to safety concerns regarding its DCCR drug, with investors able to file for lead plaintiff status by May 5, 2026, indicating strong dissatisfaction with the company's disclosure practices.
- Stock Price Volatility: Following the release of a report by Scorpion Capital on August 15, 2025, Soleno's stock price dropped 11.98% over two days to $68.09, reflecting severe market concerns about the drug's safety.
- Subsequent Impact: On September 10, 2025, Soleno disclosed a patient death linked to DCCR, causing the stock to decline by 19.21% to $56.72, further exacerbating investor losses.
- Financial Results: On November 4, 2025, Soleno reported third-quarter results indicating that DCCR's market launch was negatively impacted, leading to a 26.59% drop in stock price to $46.87, highlighting a crisis of trust in the rare disease market.
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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: 33.220
Low
75.00
Averages
110.50
High
125.00
Current: 33.220
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.
- Lawsuit Background: Soleno Therapeutics faces a class action lawsuit due to safety concerns regarding its DCCR drug, with investors able to file for lead plaintiff status by May 5, 2026, indicating strong dissatisfaction with the company's disclosure practices.
- Stock Price Volatility: Following the release of a report by Scorpion Capital on August 15, 2025, Soleno's stock price dropped 11.98% over two days to $68.09, reflecting severe market concerns about the drug's safety.
- Subsequent Impact: On September 10, 2025, Soleno disclosed a patient death linked to DCCR, causing the stock to decline by 19.21% to $56.72, further exacerbating investor losses.
- Financial Results: On November 4, 2025, Soleno reported third-quarter results indicating that DCCR's market launch was negatively impacted, leading to a 26.59% drop in stock price to $46.87, highlighting a crisis of trust in the rare disease market.
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- 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 disappointing report on DCCR (VYKAT™ XR) that triggered a 26% drop in share price on November 5, 2025.
- Safety Concerns: The lawsuit alleges that Soleno systematically downplayed and concealed significant safety risks associated with DCCR, including issues of fluid retention in clinical trial participants, indicating that the drug poses greater safety risks than disclosed, potentially undermining its commercial viability.
- Market Reaction: Since August 15, 2025, Soleno's stock price has fallen nearly 40%, primarily due to concerns raised by short seller Scorpion Capital, which noted a surge in reports of children hospitalized after using the drug, suggesting a risk of market withdrawal for VYKAT™ XR.
- Investigation Progress: Hagens Berman is investigating whether Soleno misled investors regarding the support for VYKAT™ XR's commercial prospects, urging investors who suffered significant losses to submit their information to assist in the ongoing investigation.
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- Class Action Reminder: DJS Law Group alerts investors of a class action lawsuit against Soleno Therapeutics for violations of securities laws, concerning stock purchases made between March 26, 2025, and November 4, 2025, encouraging affected shareholders to contact the firm for potential claims.
- False Statement Allegations: The complaint alleges that Soleno downplayed safety concerns regarding its DCCR drug during Phase 3 trials, leading to diminished commercial viability, thus rendering the company's public statements during the class period false and misleading.
- Lawsuit Deadline: Investors must act by May 5, 2026, to be considered for lead plaintiff status, although participation in recovery does not require this designation, providing an opportunity for affected shareholders to seek compensation.
- Law Group Expertise: DJS Law Group specializes in securities class actions and corporate governance litigation, focusing on enhancing investor returns through balanced counseling and aggressive advocacy, serving some of the largest hedge funds and alternative asset managers globally.
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- 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, to participate in the class action, as those who do not will not be eligible for compensation.
- Lawsuit Background: The lawsuit alleges that Soleno concealed significant safety concerns related to its DCCR drug during clinical trials, resulting in investors facing greater risks and potential legal repercussions after the drug's commercialization, which negatively impacted 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, demonstrating its expertise and successful track record in this field.
- Investor Advice: Investors are advised to be cautious when selecting legal counsel, prioritizing firms with proven success in securities class actions to ensure effective representation and support throughout the legal process.
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- Class Action Initiation: Soleno Therapeutics is facing a class action lawsuit for failing to disclose safety concerns related to its DCCR drug, with the class period from March 26 to November 4, 2025, and investors have until May 5, 2026, to seek lead plaintiff status, potentially impacting the company's reputation and stock price.
- Safety Concerns Uncovered: The lawsuit alleges that Soleno concealed significant safety issues related to DCCR during clinical trials, raising doubts about the drug's commercial viability and possibly prompting further regulatory scrutiny, which could affect future market performance.
- 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%, indicating a severe lack of market confidence in the company's product.
- Law Firm Background: Robbins Geller Rudman & Dowd LLP, representing the plaintiffs, has recovered $8.4 billion for investors over the past five years, showcasing its strength in securities fraud cases, which could significantly influence the legal outcomes for Soleno.
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- Legal Investigation Launched: Faruq & Faruqi, LLP is investigating Soleno Therapeutics, focusing on investors who purchased or acquired securities between March 26, 2025, and November 4, 2025, to assess potential legal claims.
- Investor Rights Reminder: The firm reminds investors that May 5, 2026, is the deadline to seek the role of lead plaintiff in a federal securities class action, emphasizing the importance of timely action to protect their rights.
- Contact Information Provided: Investors who have suffered losses are encouraged to contact Faruq & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310) to discuss their legal options.
- Securities Law Firm Role: As a leading national securities law firm, Faruq & Faruqi is committed to providing legal support to investors, ensuring their rights are upheld in securities litigation.
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