Hagens Berman Alerts Investors About Soleno Therapeutics Class Action Over Drug Launch Issues

Introduction

In a significant legal development, Hagens Berman, a national law firm specializing in shareholder rights, has issued an urgent reminder to investors in Soleno Therapeutics, Inc. (NASDAQ: SLNO) regarding a pending class action lawsuit. This class action centers around allegations that the company misled investors about the launch of its key product, the hyperphagia drug VYKAT™ XR (DCCR), which is intended for the treatment of Prader-Willi syndrome (PWS). Investors who purchased Soleno stock during the defined class period, from March 26, 2025, to November 4, 2025, and suffered financial losses, are urged to participate in this legal action before the approaching deadline of May 5, 2026.

Background of the Case

The class action arises from serious allegations against Soleno Therapeutics for allegedly providing misleading information about the efficacy and safety of VYKAT™ XR, which has raised concerns among both investors and healthcare professionals. Reports suggest that throughout the class period, the company presented a false narrative regarding the drug's market readiness and safety profile, failing to disclose critical safety risks that could jeopardize patient health.

Key Allegations

1. Concealed Safety Risks
The lawsuit claims that Soleno downplayed substantial evidence pointing to severe safety issues associated with DCCR, including risks of excess fluid retention and potential heart failure in children receiving treatment. These omissions potentially put patients at risk and misled investors regarding product safety.

2. Concerns Over Data Integrity
A report from an activist short seller, Scorpion Capital, raised red flags regarding the integrity of Soleno’s clinical trial data. The report highlighted that the company relied on the analyses of a clinician whose data exhibited inconsistencies, suggesting potential manipulations in reporting.

3. Inflated Launch Metrics
The complaint asserts that while Soleno touted the launch of DCCR as exceeding expectations, its reported metrics were allegedly inflated by questionable market practices rather than genuine demand, potentially misleading investors about the product's commercial viability.

Impact on Stock Prices

The allegations have had a drastic effect on Soleno's stock. Following the release of Scorpion Capital's report on August 15, 2025, which documented extensive adverse patient experiences with the drug, Soleno’s stock experienced a sharp decline of over ten percent in a single trading day. Then, on November 4, 2025, the situation worsened when the company disclosed weaker-than-expected financial performance and acknowledged disruptions in their product launch, leading to a staggering 27 percent drop in stock value.

Such rapid declines illustrate the significant financial impact of the alleged misrepresentations by Soleno leaders, emphasizing the importance of transparency in public company operations, especially concerning health-related products.

The Legal Call to Action

Investors who sustained substantial losses due to Soleno’s alleged misleading practices are encouraged to act quickly. The deadline of May 5, 2026, serves as a pivotal moment for those who wish to be considered for the role of lead plaintiff in the class action. Potential participants can support the case by submitting their losses to Hagens Berman, which is committed to representing investors' rights against corporate misconduct.

Reed Kathrein, a partner at Hagens Berman, stated, "Our investigation focuses on allegations that Soleno bypassed critical safety protocols while misleading investors with inflated performance metrics, which we believe warrants a thorough investigation and aggressive legal action."

Conclusion

Hagens Berman’s announcement underscores the continuing importance of accountability among pharmaceutical companies. The case against Soleno Therapeutics highlights not only the potential financial repercussions for investors but also the ethical responsibilities companies have to their patients and stakeholders. As the situation continues to unfold, affected investors should stay informed and consider their options to ensure they are represented in this critical class action lawsuit.

For more information regarding the class action and to report losses, investors may reach out to Hagens Berman’s legal team. The firm remains a staunch advocate for corporate accountability and aims to achieve meaningful results for investors suffering from corporate wrongdoing.