#USA #New York #class action lawsuit #Faruqi & Faruqi #Soleno Therapeutics

Faruqi & Faruqi Reminds Soleno Therapeutics Investors of Class Action Deadline

Date: April 3, 2026
Source: Faruqi & Faruqi, LLP

In a recent announcement, Faruqi & Faruqi, LLP, a prominent national securities law firm, has elevated awareness among investors of Soleno Therapeutics, Inc. concerning an imminent deadline for a securities class action. This deadline, set for May 5, 2026, is crucial for anyone who suffered losses by purchasing or acquiring Soleno securities between March 26, 2025, and November 4, 2025.

Background on the Investigation

Faruqi & Faruqi has opened a comprehensive investigation into potential claims against Soleno Therapeutics following substantial concerns raised by a report from Scorpion Capital LLC that criticized the company’s drug candidate, DCCR. The report alleged serious issues regarding the safety and effectiveness of DCCR, as well as the integrity of clinical trial data surrounding its Phase 3 clinical program.

The class action claims that the executives of Soleno Therapeutics violated federal securities laws through a series of misleading statements and a failure to disclose significant safety concerns related to DCCR. Specifically, it is alleged that the company downplayed issues associated with fluid retention in trial participants, misrepresented the risks involved, and concealed that DCCR posed considerable threats to patient safety.

As a consequence of these undisclosed risks, DCCR faced declining commercial viability, prompting fears regarding potential adverse outcomes after its market entry, such as higher rates of patient dropouts, reluctance among prescribers, and possible regulatory actions. This troubling trajectory has raised significant alarm in the Prader-Willi Syndrome (PWS) community and among investors.

Share Price Impact

The revelations stemming from the Scorpion Capital report have dramatically influenced Soleno's stock performance. Following the unfavorable report on August 15, 2025, Soleno's share price plummeted by nearly 12% over two days, falling from a peak of over $77 to around $68. Moreover, after a tragic incident where a patient died while using DCCR, the stock continued its downward trend, resulting in a 19% decline over the two days after the news broke. Additional financial results further indicated that the report disrupted Soleno’s launch trajectory and led to increased patient discontinuations, causing the stock to drop another 27% in a single day.

Action Steps for Investors

Faruqi & Faruqi encourages investors who have endured losses in their investments to reach out as soon as possible. It is essential for potential lead plaintiffs to come forward in order to direct the litigation on behalf of the class. Any member of the proposed class can take steps to engage with the court or remain an absent class member, though participation could benefit their chances of recovery.

If you believe you have been adversely affected, you can contact Faruqi & Faruqi directly. They are particularly interested in speaking with whistleblowers, former employees, shareholders, and anyone with insights into Soleno's practices.

For additional information about the ongoing class action against Soleno Therapeutics, visit www.faruqilaw.com/SLNO or call attorney Josh Wilson at 877-247-4292. You can also reach him at the office directly via 212-983-9330, extension 1310. Stay updated with further developments on platforms like LinkedIn, X, and Facebook.

Conclusion

As the deadline for the securities class action approaches, investors are urged to act swiftly. The imperative nature of this class action highlights the ongoing risks associated with Soleno Therapeutics and the importance of safeguarding investor rights against potentially misleading corporate practices.

_Faruqi & Faruqi, LLP is committed to protecting investors and recovering losses caused by corporate misconduct. Attorney Advertising._