#United States #California #Kessler Topaz Meltzer #Soleno Therapeutics #SLNO

Class Action Lawsuit Filed Against Soleno Therapeutics, Inc.

On March 20, 2026, Kessler Topaz Meltzer & Check, LLP announced the initiation of a securities fraud class action lawsuit against Soleno Therapeutics, Inc. (NASDAQ: SLNO). This lawsuit affects investors who purchased or acquired shares of Soleno between March 26, 2025, and November 4, 2025. Filed in the United States District Court for the Northern District of California, the case is formally titled City of Pontiac Police and Fire Retirement System v. Soleno Therapeutics, Inc., et al., under Case No. 326-cv-01979.

Background on the Allegations

The lawsuit revolves around serious allegations concerning misrepresentation and omission of critical information relating to Soleno's Phase 3 clinical trial program. The primary focus of this trial was its only commercial product, diazoxide choline extended-release tablets (DCCR), which is aimed at treating hyperphagia in patients suffering from Prader-Willi syndrome (PWS).

According to the complaint, Soleno's executives allegedly made materially false statements about the safety and effectiveness of DCCR. It suggests that the company downplayed significant safety concerns linked to the administration of DCCR. Investors claim that numerous adverse effects, including serious issues related to excess fluid retention among clinical trial participants, were not disclosed properly, leading to misinformed investment decisions.

Furthermore, the complaint highlights that DCCR ostensibly had lower commercial viability than the company claimed, affecting patient adoption and increasing the risk of adverse events post-launch, which could result in reputational damage and possible legal consequences for Soleno.

Impact on Soleno's Stock

The stock price of Soleno Therapeutics faced dramatic declines following revelations about the company’s clinical programs. On November 4, 2025, after the company reported its financial results for the third fiscal quarter, they also acknowledged disruptions caused by a critical report from Scorpion Capital, LLC. This report raised serious concerns regarding DCCR's launch trajectory, revealing significant issues with the clinical trial program. Following this news, Soleno's stock experienced a significant drop of more than 26%.

What Affected Investors Can Do

Current and former investors in Soleno are advised to take action. They have a deadline of May 5, 2026, to file for lead plaintiff status in the case, should they wish to represent the class of affected shareholders. Those interested in pursuing legal recourse are encouraged to reach out to Kessler Topaz Meltzer & Check, LLP for a complimentary case evaluation. Importantly, there are no fees incurred unless there is a successful recovery from this lawsuit.

Next Steps

Investors have a few options:
1. File for Lead Plaintiff Status: Interested parties can seek to step into the role of lead plaintiff by the May 5 deadline. The lead plaintiff will guide the lawsuit and has the most substantial financial interest in the case.
2. Contact Legal Counsel: Potential claimants can also retain their counsel or choose to remain uninvolved as absentee class members.
3. Evaluate Options: It’s essential to weigh the risks and benefits of seeking legal action, keeping in mind that participation in the case does not influence the potential recovery amount.

For those impacted, engaging with Kessler Topaz Meltzer & Check, LLP could be a vital step toward recovering losses incurred during the alleged securities fraud.

About Kessler Topaz Meltzer & Check, LLP

Kessler Topaz Meltzer & Check, LLP is recognized for its commitment to protecting investors’ rights through securities litigation. With a proven track record of securing significant recoveries for clients, they stand at forefront of legal representation in securities fraud cases. To learn more about their services and the current case against Soleno, visit their website or contact their attorney, Jonathan Naji, directly.

Conclusion

This securities fraud litigation serves as a stark reminder of the risks involved in investment decisions and the importance of transparency and accountability within publicly traded companies. Affected investors are encouraged to seek the assistance they need to navigate the complexities of legal recourse.