Soleno Therapeutics Faces Securities Fraud Class Action Lawsuit
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy SLNO?
Source: Globenewswire
- 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.
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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: 33.480
Low
75.00
Averages
110.50
High
125.00
Current: 33.480
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: 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
Faruqi & Faruqi Investigates Soleno Securities Fraud Case
- Legal Investigation Launched: Faruq & Faruq LLP is investigating potential securities fraud claims against Soleno Therapeutics (NASDAQ: SLNO), particularly concerning safety issues related to its DCCR drug, urging investors to contact them by May 5, 2026, to seek lead plaintiff status.
- Stock Price Volatility: Following a critical report from Scorpion Capital on August 15, 2025, which raised significant concerns about the safety and efficacy of Soleno's drug, the stock price plummeted from $77 to $68, marking a nearly 12% decline within two trading days.
- Patient Safety Risks: The clinical trials for Soleno have been accused of downplaying safety concerns related to DCCR, including issues of fluid retention among participants, which raises serious questions about the drug's commercial viability and could adversely affect its market performance.
- Financial Results Impact: On November 4, 2025, Soleno reported third-quarter results indicating that the Scorpion Capital report disrupted the launch trajectory of DCCR, leading to fewer patient start forms and increased discontinuations, resulting in a 27% drop in stock price in a single day.
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 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
Faruqi & Faruqi Investigates Soleno Securities Fraud Case
- Legal Investigation Launched: Faruq & Faruq LLP is investigating potential securities fraud claims against Soleno Therapeutics (NASDAQ: SLNO), particularly concerning safety issues related to its DCCR drug, urging investors to contact them by May 5, 2026, to seek lead plaintiff status.
- Stock Price Volatility: Following a critical report from Scorpion Capital on August 15, 2025, which raised significant concerns about the safety and efficacy of Soleno's drug, the stock price plummeted from $77 to $68, marking a nearly 12% decline within two trading days.
- Patient Safety Risks: The clinical trials for Soleno have been accused of downplaying safety concerns related to DCCR, including issues of fluid retention among participants, which raises serious questions about the drug's commercial viability and could adversely affect its market performance.
- Financial Results Impact: On November 4, 2025, Soleno reported third-quarter results indicating that the Scorpion Capital report disrupted the launch trajectory of DCCR, leading to fewer patient start forms and increased discontinuations, resulting in a 27% drop in stock price in a single day.
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
