#United States #San Diego #Johnson Fistel #Soleno Therapeutics #SLNO

Johnson Fistel Investigates Allegations Against Soleno Therapeutics

Johnson Fistel, a prominent law firm specializing in shareholder rights, has recently announced its investigation into Soleno Therapeutics, Inc. (NASDAQ: SLNO). This inquiry is particularly aimed at shareholders who might have suffered losses due to potential violations of federal securities laws by the company and some of its executives. The investigation focuses on whether misleading statements were made or whether critical information was withheld from investors regarding the company's operations and the safety profile of its product, VYKAT™ XR.

Background of the Investigation

The investigation was prompted by a concerning turn of events surrounding Soleno's VYKAT™ XR, a drug recently cleared by the FDA for commercial release. After the regulatory approval, Soleno management reported a strong rollout of the product, indicating that it was performing better than anticipated in the market. However, discrepancies began to emerge when the company held its third-quarter earnings call on November 4, 2025.

During this call, Soleno's management candidly addressed several challenges that surfaced during the product launch. They revealed a notable slowdown in new treatment initiations and recognized an increase in therapy discontinuations attributed to non-serious adverse events. These admissions starkly contrasted with prior statements and may have raised questions about the company's public communication strategy.

The Role of Scorpion Capital's Report

Adding to the turbulence, a report released by short seller Scorpion Capital on August 15, 2025, flagged numerous concerns regarding VYKAT™ XR. The report not only questioned the safety profile of the drug but also addressed the sustainability of its market demand and highlighted the risks associated with Soleno's business model, which seems heavily reliant on just one product. Given that this product's patent protection is expected to lapse soon, the report further suggested that some of the clinical research tied to VYKAT™ XR warranted additional scrutiny.

After the release of this critical report, Soleno's stock prices plummeted, reflecting investor anxiety. The company's share value dropped by nearly 40% between August 14 and November 5, 2025. This significant volatility raised alarms about the robustness of Soleno’s market strategies and the accuracy of their prior communications.

Implications for Shareholders

For investors who purchased Soleno shares during this turbulent period and subsequently incurred losses, the ongoing investigation led by Johnson Fistel seeks to address the implications of these actions. Specifically, shareholders are encouraged to participate in the investigation, considering the possibility of joining legal actions that could emerge if the investigation supports claims of misrepresentation and negligence by the company’s leadership.

Johnson Fistel reassures that its services come at no cost or obligation to shareholders looking to understand their rights and potential recourse. Those who have faced losses are urged to reach out, as this investigation could lead to significant outcomes for affected investors.

Conclusion

As Johnson Fistel delves deeper into the situation surrounding Soleno Therapeutics, investors are advised to stay informed and assess their positions regarding the unfolding developments. With significant allegations on the table and potential consequences at stake, the watchful eye of the public and the legal framework will undoubtedly play a critical role in these proceedings. The law firm's history of recovering substantial amounts for investors emphasizes the serious nature of such inquiries and the potential for justified reparations. For more details on the investigation or to contact the firm, affected stakeholders can visit Johnson Fistel's website or reach out directly to their representatives.