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.
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- 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, affecting 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), leading to significant investor losses and a decline in stock price due to concealed risks.
- Stock Price Plunge: On November 4, 2025, Soleno reported Q3 results, admitting disruptions in DCCR's launch trajectory, which resulted in a 27% drop in stock price in a single day, indicating a severe loss of market confidence.
- 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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- Class Action Initiated: Soleno Therapeutics is facing a class action lawsuit due to materially misleading statements regarding its sole commercial product, VYKAT XR, during the class period from March 26, 2025, to November 4, 2025, potentially exposing investors to significant losses.
- Concealed Commercial Risks: The lawsuit alleges that management failed to disclose that DCCR's commercial viability was materially lower than represented, including risks of severe adverse events and rising patient discontinuation rates, which could lead to a substantial decline in company revenues.
- Declining Prescriber Willingness: As adverse reactions emerged, endocrinologists showed decreasing willingness to prescribe VYKAT XR, with many indicating they would not recommend the drug, directly impacting its market acceptance and adoption.
- Reputational Risks Intensified: Reports of serious harm from patients on social media could lead to potential legal and reputational fallout, further undermining investor confidence and affecting future financing and market performance.
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- Lawsuit Background: Bragar Eagel & Squire, P.C. announces a class action lawsuit against Soleno Therapeutics for investors who purchased common stock between March 26 and November 4, 2025, with a deadline of May 5, 2026, to apply as lead plaintiffs.
- Allegation Details: The complaint alleges that Soleno concealed significant safety concerns regarding its DCCR drug, including issues of fluid retention in trial participants, which led to a severe underestimation of the drug's commercial viability and safety risks.
- Investor Losses: Investors suffered damages when the true safety risks were revealed, and the lawsuit seeks accountability from Soleno for these losses, highlighting the potential for significant financial repercussions.
- Legal Consultation Opportunity: Bragar Eagel & Squire encourages affected investors to reach out for legal advice regarding their rights and options, emphasizing that there is no cost or obligation involved in the consultation.
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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 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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