Soleno Therapeutics Shares Drop 26.59% Following Safety Concerns Over Vykat XR
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 12 2026
0mins
Should l Buy SLNO?
Source: Businesswire
- Stock Price Plunge: Following a report from Scorpion Capital labeling Soleno's sole product, Vykat XR, as overpriced and potentially unsafe for children, the company's shares fell by $5.73 on August 15, 2025, representing a decline of approximately 7.41%.
- Rising Discontinuation Rate: During the quarterly earnings call on November 4, 2025, Soleno's CEO disclosed that the discontinuation rate for Vykat XR due to adverse effects was around 8% at the end of Q3 2025, raising further concerns among investors.
- Significant Stock Drop: Following the earnings report, Soleno's stock plummeted by $16.98, or 26.59%, from $63.85 to $46.87 on November 5, 2025, reflecting strong investor apprehension regarding product safety.
- Ongoing Legal Investigation: Kirby McInerney LLP is investigating potential violations of federal securities laws by Soleno and its senior management on behalf of investors, which could have significant implications for the company's future legal and financial standing.
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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 Class Action Lawsuit Over DCCR Disclosures
- Lawsuit Background: Soleno Therapeutics is facing a securities class action lawsuit due to disappointing disclosures about DCCR (VYKAT™ XR) on November 5, 2025, involving investors who purchased shares between March 26 and November 4, 2025, indicating significant investor dissatisfaction with the company's transparency.
- Stock Price Plunge: The report triggered a 26% drop in the company's stock price on the same day, reflecting market distrust regarding the safety and efficacy of DCCR, which exacerbates investor concerns about future commercial prospects and may impact the company's financing and market confidence.
- Safety Controversies: The lawsuit alleges that Soleno concealed significant safety risks associated with DCCR during clinical trials, including issues related to fluid retention in participants, potentially leading to a substantial decrease in the drug's commercial viability and affecting the company's future market performance.
- Market Reaction: Since August 15, 2025, Soleno's stock price has fallen nearly 40%, demonstrating investor dissatisfaction with the management's response to the market impact following the short seller report, further intensifying scrutiny over the company's governance and transparency.
See More
Reminder of Class Action Lawsuit for Soleno Therapeutics
- 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 higher risks and potential legal repercussions for investors, thereby affecting the drug's commercial viability.
- Law Firm Credentials: Rosen Law Firm specializes in securities class actions and has recovered over $438 million for investors in 2019 alone, highlighting its successful track record, which investors should consider when selecting legal counsel.
- Investor Action Advice: Investors can visit the Rosen Law Firm website or call the toll-free number for more information on how to participate in the lawsuit, ensuring they have appropriate legal representation in the class action.
See More
Soleno Therapeutics Faces Class Action Lawsuit Over Misleading Statements
- Class Action Reminder: The Schall Law Firm alerts investors of a class action lawsuit against Soleno Therapeutics for violations of securities laws, concerning securities transactions between March 26, 2025, and November 4, 2025, with a deadline for participation set for May 5, 2026.
- False Statement Allegations: The complaint alleges that Soleno misled the market regarding safety issues in its DCCR clinical trial, resulting in investor losses when the truth emerged, indicating that the company's public statements were false and materially misleading throughout the class period.
- Concealed Safety Risks: Soleno's DCCR treatment exhibited greater safety risks than disclosed, along with lower commercial viability and increased adverse event risks, which significantly impacted investor decision-making and trust in the company.
- Legal Consultation Opportunity: The Schall Law Firm offers free consultations and encourages affected investors to reach out to discuss their rights, highlighting the firm's specialization in securities class action lawsuits aimed at helping investors recover losses.
See More
Faruqi & Faruqi Encourages Soleno Investors to Reach Out
- Legal Investigation Launched: Faruq & Faruq LLP is investigating potential claims against Soleno Therapeutics, particularly for investors who purchased or acquired securities between March 26, 2025, and November 4, 2025, highlighting the firm's commitment to investor rights.
- Investor Contact Information: Securities Litigation Partner Josh Wilson encourages affected investors to reach out directly, providing contact numbers 877-247-4292 and 212-983-9330 (Ext. 1310), aimed at helping investors understand their legal rights.
- Class Action Deadline: Investors should note that the deadline to seek the role of lead plaintiff in the federal securities class action is May 5, 2026, making this date critical for potential legal actions.
- Potential Impact Assessment: This investigation may affect Soleno's stock price and investor confidence, reflecting market concerns over the company's compliance and financial transparency, potentially leading investors to take legal action to protect their interests.
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 Faces Class Action Lawsuit Over DCCR Disclosures
- Lawsuit Background: Soleno Therapeutics is facing a securities class action lawsuit due to disappointing disclosures about DCCR (VYKAT™ XR) on November 5, 2025, involving investors who purchased shares between March 26 and November 4, 2025, indicating significant investor dissatisfaction with the company's transparency.
- Stock Price Plunge: The report triggered a 26% drop in the company's stock price on the same day, reflecting market distrust regarding the safety and efficacy of DCCR, which exacerbates investor concerns about future commercial prospects and may impact the company's financing and market confidence.
- Safety Controversies: The lawsuit alleges that Soleno concealed significant safety risks associated with DCCR during clinical trials, including issues related to fluid retention in participants, potentially leading to a substantial decrease in the drug's commercial viability and affecting the company's future market performance.
- Market Reaction: Since August 15, 2025, Soleno's stock price has fallen nearly 40%, demonstrating investor dissatisfaction with the management's response to the market impact following the short seller report, further intensifying scrutiny over the company's governance and transparency.
See More
Reminder of Class Action Lawsuit for Soleno Therapeutics
- 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 higher risks and potential legal repercussions for investors, thereby affecting the drug's commercial viability.
- Law Firm Credentials: Rosen Law Firm specializes in securities class actions and has recovered over $438 million for investors in 2019 alone, highlighting its successful track record, which investors should consider when selecting legal counsel.
- Investor Action Advice: Investors can visit the Rosen Law Firm website or call the toll-free number for more information on how to participate in the lawsuit, ensuring they have appropriate legal representation in the class action.
See More
Soleno Therapeutics Faces Class Action Lawsuit Over Misleading Statements
- Class Action Reminder: The Schall Law Firm alerts investors of a class action lawsuit against Soleno Therapeutics for violations of securities laws, concerning securities transactions between March 26, 2025, and November 4, 2025, with a deadline for participation set for May 5, 2026.
- False Statement Allegations: The complaint alleges that Soleno misled the market regarding safety issues in its DCCR clinical trial, resulting in investor losses when the truth emerged, indicating that the company's public statements were false and materially misleading throughout the class period.
- Concealed Safety Risks: Soleno's DCCR treatment exhibited greater safety risks than disclosed, along with lower commercial viability and increased adverse event risks, which significantly impacted investor decision-making and trust in the company.
- Legal Consultation Opportunity: The Schall Law Firm offers free consultations and encourages affected investors to reach out to discuss their rights, highlighting the firm's specialization in securities class action lawsuits aimed at helping investors recover losses.
See More
Faruqi & Faruqi Encourages Soleno Investors to Reach Out
- Legal Investigation Launched: Faruq & Faruq LLP is investigating potential claims against Soleno Therapeutics, particularly for investors who purchased or acquired securities between March 26, 2025, and November 4, 2025, highlighting the firm's commitment to investor rights.
- Investor Contact Information: Securities Litigation Partner Josh Wilson encourages affected investors to reach out directly, providing contact numbers 877-247-4292 and 212-983-9330 (Ext. 1310), aimed at helping investors understand their legal rights.
- Class Action Deadline: Investors should note that the deadline to seek the role of lead plaintiff in the federal securities class action is May 5, 2026, making this date critical for potential legal actions.
- Potential Impact Assessment: This investigation may affect Soleno's stock price and investor confidence, reflecting market concerns over the company's compliance and financial transparency, potentially leading investors to take legal action to protect their interests.
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
