Soleno Therapeutics Faces Securities Class Action Amid Investor Discontent and Share Price Decline
Soleno Therapeutics Faces Lawsuit After Share Price Drop
In recent developments, Soleno Therapeutics, Inc. (NASDAQ: SLNO) is embroiled in a securities class action lawsuit that has been initiated to represent investors who bought shares between March 26, 2025, and November 4, 2025. This legal action follows the company's troubling report released on November 5, 2025, concerning DCCR, a trademarked oral medication known as VYKAT™ XR, designed to treat severe hyperphagia associated with Prader-Willi Syndrome (PWS).
According to reports, hyperphagia is considered the most life-limiting symptom of PWS, a rare genetic disorder that poses various physical and psychological challenges. The fallout from Soleno's report caused an alarming 26% decline in the company's stock value on the same day, significantly impacting investor confidence.
The law firm Hagens Berman, known for advocating for shareholders' rights, is actively investigating whether Soleno may have violated federal securities laws by providing misleading information about DCCR's safety and efficacy. They urge any affected investors to report their losses to assist in the ongoing inquiry.
Central to the lawsuit is the assertion that Soleno made overly optimistic claims about the DCCR launch, with statements indicating a performance that exceeded expectations. However, the lawsuit alleges these claims downplayed crucial safety concerns linked to DCCR, particularly incidents of excess fluid retention during clinical trials, which posed greater risks than the company disclosed. Consequently, the real commercial viability of DCCR may be far less promising than Soleno led investors to believe.
These concerns began to crystallize when an activist short-seller, Scorpion Capital, published a damning report about Soleno on August 15, 2025. The report noted a surge in hospitalizations of children who utilized VYKAT™ XR, raising questions about its safety and long-term prescription potential. The firm accused Soleno of relying too heavily on a
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