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Legal Alert: Investor Rights and Soleno Therapeutics

In recent developments impacting the investment landscape, Robbins LLP has issued a reminder to investors about a class action lawsuit concerning Soleno Therapeutics, Inc. (NASDAQ: SLNO). The legal action represents shareholders who acquired shares in the company between March 26, 2025, and November 4, 2025, a pivotal timeframe during which critical information allegedly remained undisclosed by the company.

Background on Soleno Therapeutics

Soleno Therapeutics is a pharmaceutical entity dedicated to creating treatments for rare diseases. Its flagship product is Diazoide Choline Extended-Release (DCCR), aimed at treating hyperphagia in patients suffering from Prader-Willi syndrome (PWS). Despite its innovative approach, the company now faces scrutiny over the integrity of its clinical data and communication with stakeholders.

Allegations of Misleading Information

According to the allegations detailed in the complaint, Soleno Therapeutics is accused of misleading investors about the safety and effectiveness of DCCR. Specific claims state that during the class action period, Soleno failed to disclose significant safety concerns tied to its Phase 3 clinical trial. Key allegations include:

• - The trial reportedly underestimated and misrepresented the potential risks associated with DCCR’s administration, including serious issues related to fluid retention.
• - As a result of such omissions, investors were led to believe that DCCR was safe for usage when in fact, the potential for severe adverse reactions was substantial.

The document alleges that this misinformation led to a distorted perception of DCCR's commercial viability. The complaint specifically cites an investigative report by Scorpion Capital released on August 15, 2025, which detailed serious safety issues and negative reports from patients following the drug's launch. Stocks took a dramatic hit when this report surfaced, with shares decreasing nearly 12% over just two days.

On September 10, 2025, a further blow came when Soleno filed a report with the SEC confirming that a patient had tragically died following the use of DCCR. This revelation sparked a further stock decline of approximately 19% over two days.

The situation escalated on November 4, 2025, when CEO Bhatnagar revealed that the negative press had negatively affected DCCR’s market launch, resulting in fewer patient registrations and increased discontinuations after publication of the Scorpion Capital report. Consequently, shares plummeted nearly 27% in just one day.

What's Next for Investors?

Investors affected by this situation may have grounds to participate in the class action against Soleno Therapeutics. Those who believe they are eligible to be lead plaintiffs—individuals who take on a representative role within the legal proceedings—are encouraged to contact Robbins LLP for guidance. Importantly, participation is not a prerequisite for obtaining a share of any recovery that may arise from the case.

Robbins LLP emphasizes that their representation is based on a contingency fee model, meaning that shareholders owe nothing upfront; fees will only be incurred if the lawsuit yields favorable outcomes.

About Robbins LLP

Established in 2002, Robbins LLP has cultivated a robust reputation as a leader in shareholder rights litigation. Their strategic focus on helping investors recover losses and ensuring accountability from corporate executives is crucial in maintaining fair market practices.

For those wishing to stay informed about further developments in this case or others like it, signing up for Stock Watch can provide timely updates and notifications regarding potential settlements or significant corporate misconduct.

In conclusion, the allegations against Soleno Therapeutics call into question not only the company’s inner workings but also highlight the broader implications for investor rights in the pharmaceutical sector. Stakeholders are urged to remain vigilant and informed as the case unfolds.