Soleno Therapeutics Under Investigation, Shares Plunge 26.59%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 17 2026
0mins
Should l Buy SLNO?
Source: Globenewswire
- Stock Price Drop: On August 15, 2025, Soleno's shares fell from $77.36 to $71.64, a decline of approximately 7.41%, following a report by Scorpion Capital labeling its only product, Vykat XR, as overpriced and potentially unsafe for children.
- Increased Discontinuation Rate: During the 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 significant safety concerns among investors.
- Severe Stock Plunge: Following the earnings report, Soleno's stock plummeted from $63.85 to $46.87, a staggering drop of 26.59%, reflecting investors' extreme pessimism regarding the company's future prospects.
- Legal Investigation Initiated: Kirby McInerney LLP has reminded investors of an ongoing investigation into potential violations of federal securities laws by Soleno and its senior management, which could adversely affect the company's reputation and future stock performance.
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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: 52.720
Low
75.00
Averages
110.50
High
125.00
Current: 52.720
Low
75.00
Averages
110.50
High
125.00
About SLNO
Soleno Therapeutics, Inc. is focused on the development and commercialization of novel therapeutics for the treatment of rare diseases. Its first commercial product, VYKAT XR (diazoxide choline) extended-release tablets, is a once-daily oral treatment for hyperphagia in adults and children four years of age and older with Prader-Willi syndrome (PWS). VYKAT XR contains diazoxide choline, a potent ATP-sensitive potassium (KATP) channel activator. The KATP channels play a central role in the regulation of a number of physiological processes which may otherwise be dysregulated, contributing to the pathophysiology of several diseases. In the context of the underlying genetic or structural defects in PWS, these pathophysiological processes may cumulatively contribute to increases in appetite and aggressive food seeking, lack of satiety, accumulation of excess body fat and the establishment and perpetuation of the obese state. PWS is a rare, complex genetic neurobehavioral/metabolic disorder.
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.
- 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 and potentially receive compensation.
- Lawsuit Background: The lawsuit alleges that Soleno concealed significant safety concerns regarding its DCCR drug during clinical trials, leading to increased commercial risks and potential legal repercussions, which negatively impacted investor confidence and the company's stock price.
- Law Firm Credentials: Rosen Law Firm specializes in securities class actions and has achieved the largest securities class action settlement against a Chinese company, demonstrating its extensive experience and success in handling such cases.
- Investor Action Advice: Investors can visit the Rosen Law Firm website or call the toll-free number for more information, emphasizing the importance of selecting qualified legal counsel to ensure optimal representation in the lawsuit.
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- Lawsuit Background: Soleno Therapeutics faces a class action lawsuit due to safety concerns regarding its DCCR drug, with investors who purchased stock between March 26, 2025, and November 4, 2026, potentially eligible to recover losses.
- Stock Price Decline: Following the August 15, 2025, report by Scorpion Capital, Soleno's stock price dropped 11.98% over two days to $68.09, indicating market apprehension regarding the drug's safety.
- Further Losses: On September 10, 2025, Soleno disclosed a patient death linked to DCCR, causing the stock to fall an additional 19.21% to $56.72 over two days, exacerbating investor losses.
- Financial Impact: On November 4, 2025, Soleno reported that the launch of DCCR was disrupted, leading to a 26.59% drop in stock price to $46.87, reflecting a significant erosion of investor confidence in the company's future prospects.
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- Soleno Therapeutics Issues: Soleno Therapeutics faces allegations of concealing safety concerns related to its Phase 3 clinical trial for DCCR from March 26 to November 4, 2025, impacting its commercial viability, with a lead plaintiff deadline of May 5, 2026.
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- Lawsuit Background: Bronstein, Gewirtz & Grossman LLC has filed a class action lawsuit against Soleno Therapeutics and certain executives, alleging failure to disclose safety concerns related to the DCCR clinical trial from March 26 to November 4, 2025, potentially leading to investor losses.
- Inadequate Safety Disclosure: The complaint claims that Soleno systematically downplayed and concealed significant safety issues during the Phase 3 clinical trial of DCCR, particularly regarding fluid retention in participants, raising serious doubts about the drug's commercial viability.
- Potential Risk Implications: The undisclosed safety risks associated with DCCR could result in higher patient discontinuation rates and prescriber reluctance, adversely affecting market acceptance and the company's reputation in the pharmaceutical industry.
- Investor Action Recommendation: Affected investors are encouraged to apply to be lead plaintiffs by May 5, 2026, to share in any potential recovery, with the law firm operating on a contingency fee basis, thus minimizing financial risk for investors.
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- Organon Merger Case: Organon & Co. will be acquired by Sun Pharmaceutical for $14.00 per share in cash, with an enterprise valuation of $11.75 billion, and the investigation focuses on whether the Organon Board failed to treat shareholders fairly, potentially impacting shareholder rights.
- RE/MAX Acquisition Proposal: RE/MAX Holdings, Inc. will be acquired by The Real Brokerage, allowing shareholders to choose between 5.152 shares of the new company or $13.80 in cash per share, with investigations into whether the Board failed to handle the transaction fairly, affecting shareholder interests.
- Soleno Acquisition Investigation: Soleno Therapeutics, Inc. will be acquired by Neurocrine Biosciences for $53.00 per share, representing a total transaction value of approximately $2.9 billion, but this price is below its 52-week high of $90.32, raising questions about the Board's fairness in the deal.
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- Lawsuit Notification: Hagens Berman reminds investors of the lead plaintiff deadline for the securities class action against Soleno Therapeutics (NASDAQ: SLNO) on May 5, 2026, urging those who purchased shares between March 26, 2025, and November 4, 2025, and suffered significant losses to file claims.
- Safety Risk Allegations: The lawsuit alleges that Soleno concealed serious safety risks associated with its flagship product, VYKAT™ XR (DCCR), for treating Prader-Willi syndrome, including significant concerns about fluid retention and potential heart failure in children using the drug.
- Data Integrity Issues: A report highlighted that Soleno's Phase 3 clinical trials relied on a controversial physician whose data showed irregularities, raising concerns about the integrity of the data and the company's misrepresentation of DCCR's commercial viability.
- Stock Price Plunge: Following Soleno's admission on November 4, 2025, of disruptions in DCCR's launch trajectory, the stock plummeted 27% in a single day, reflecting the market's strong reaction to the company's financial disclosures and safety concerns.
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