BENSALEM, Pa.–(BUSINESS WIRE)–Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Soleno Therapeutics, Inc. (“Soleno” or the “Company”) (NASDAQ: SLNO) common stock between March 26, 2025 and November 4, 2026, inclusive (the “Class Period”). Soleno investors have until May 5, 2026 to file a lead plaintiff motion.
IF YOU ARE AN INVESTOR WHO SUFFERED A LOSS IN SOLENO THERAPEUTICS, INC. (SLNO), CONTACT THE LAW OFFICES OF HOWARD G. SMITH TO PARTICIPATE IN THE ONGOING SECURITIES FRAUD LAWSUIT.
Contact the Law Offices of Howard G. Smith to discuss your legal rights by email at [email protected], by telephone at (215) 638-4847 or visit our website at www.howardsmithlaw.com.
What Happened?
On August 15, 2025, activist investor organization Scorpion Capital LLC published a 415-page report regarding Soleno entitled “Russian Roulette With Prader-Willi Children: How The Latest Rare-Disease Price-Gouging Scheme Fleeced the FDA, Parents, And Its Own Study Investigators With A Worthless, Toxic Drug.” The report alleges a number of problems with the Company’s diazoxide choline tablet (“DCCR”), including clinical trial conduct, safety and efficacy concerns, and patient reports of serious adverse reactions following its commercial launch.
On this news, the price of Soleno stock declined $9.27 per share, or 11.98%, over two trading days to close at $68.09 on August 18, 2025, thereby injuring investors.
Then, on September 10, 2025, Soleno filed a Form 8-K with the U.S. Securities and Exchange Commission disclosing that a patient had died after taking DCCR.
On this news, the price of Soleno stock declined $13.49 per share, or 19.21%, over two trading days to close at $56.72 on September 11, 2025, thereby further injuring investors.
Finally, on November 4, 2025, Soleno reported its third quarter 2025 financial results, revealing that the Scorpion Capital report had disrupted DCCR’s launch trajectory and raised concerns within the Prader-Willi syndrome community, in part resulting in a lower number of patient start forms and increased discontinuations beginning after the report’s publication.
On this news, the price of Soleno stock declined $16.98 per share, or 26.59% to close at $46.87 on November 5, 2025, thereby further injuring investors.
What Is The Lawsuit About?
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) the Soleno Phase 3 clinical trial program for DCCR had systematically downplayed, misrepresented, and/or concealed significant evidence of safety concerns potentially related to the administration of DCCR, including issues related to excess fluid retention in clinical trial participants; (2) as a result, the administration of DCCR to treat hyperphagia in individuals with PWS posed materially greater safety risks than disclosed by Soleno or its executives; and (3) consequently, DCCR had materially lower commercial viability and undisclosed risks related to the likelihood of significant and widespread adverse events after its commercial launch, including risks related to patient discontinuation rates, lower patient adoption, prescriber reluctance, adverse regulatory action, and potential reputational and legal fallout; and (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
Contact Us To Participate or Learn More:
If you purchased Soleno common stock, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us:
Law Offices of Howard G. Smith
3070 Bristol Pike, Suite 112
Bensalem, Pennsylvania 19020
Telephone: (215) 638-4847
Email: [email protected]
Visit our website at: www.howardsmithlaw.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contacts
Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847
[email protected]
www.howardsmithlaw.com
