Investors May Lead Class Action Against Soleno Therapeutics for Alleged Fraud Regarding Drug Safety Risks

Investor Alert: Soleno Therapeutics Securities Fraud Lawsuit

In the fast-evolving landscape of healthcare investments, recent developments surrounding Soleno Therapeutics, Inc. (NASDAQ: SLNO) have raised alarms. Prominent law firm Hagens Berman has alerted investors about a pending securities class action due to significant allegations concerning fraud and the concealment of crucial drug safety risks related to Soleno’s flagship product, VYKAT™ XR (DCCR), intended for the treatment of Prader-Willi syndrome (PWS).

Now is the time for any investors who acquired Soleno stock during the specified period to assess their options, as there is an upcoming deadline on May 5, 2026, for those wishing to act as lead plaintiffs in the case.

The Allegations

As per the claims outlined in the complaint, Soleno Therapeutics allegedly failed to disclose critical information about the safety and efficacy of DCCR, leading to investor losses. Investors who purchased stock between March 26, 2025, and November 4, 2025, and experienced significant financial impact are encouraged to come forward. The case, filed in the Northern District of California, has drawn attention due to several troubling allegations:

1. Concealed Safety Issues
The complaint asserts that Soleno downplayed serious risks associated with DCCR, including potentially dangerous side effects such as excess fluid retention and heart failure, particularly in children who were using the medication.

2. Compromised Integrity
An independent report by activist short seller Scorpion Capital highlighted irregularities in Soleno’s clinical trials, suggesting reliance on questionable data. This report raised serious questions regarding the integrity of the scientific information submitted by the company.

3. Misleading Launch Metrics
Soleno is accused of inflating the success of the DCCR launch, claiming outcomes that did not reflect actual market demand. This manipulation may have served to artificially maintain their stock price amid mounting skepticism.

Market Impact and Stock Declines

The ramifications of these allegations have already begun to manifest with significant declines in stock price. Following the publication of Scorpion Capital’s report on August 15, 2025, which detailed adverse reactions from patients, Soleno’s stock fell sharply, demonstrating the market's immediate reaction to the unsettling news.

Furthermore, the situation worsened on November 4, 2025, when Soleno acknowledged disruptions to the launch trajectory of DCCR. The company's management admitted to falling short on patient start forms, which sent stock values into a downspin, witnessing a staggering 27% drop in just one day.

What Investors Should Do

Investors who suspect they may have incurred losses due to these allegations of fraud should act quickly. The deadline to petition the court to participate in the lawsuit as a lead plaintiff is April 5, 2026. It is crucial for potentially affected investors to compile their evidence and register their losses with Hagens Berman's firm. This step is vital not only for personal recovery but also to ensure collective accountability for Soleno Therapeutics' alleged actions.

Whistleblower Information

Additionally, individuals who possess non-public information about Soleno are encouraged to consider participating in the SEC Whistleblower Program. Those who offer original insights leading to recoveries can receive up to 30% in rewards from successful enforcement actions.

About Hagens Berman

Hagens Berman Sobol Shapiro LLP is an established plaintiffs' rights law firm renowned for its commitment to corporate accountability. With a history of successfully secured over $2.9 billion in various legal cases, the firm represents a diverse range of clients, including whistleblowers and investors whose interests have been compromised by corporate misconduct. The firm's dedication and track record have made it a significant player in bringing justice to those wronged in the financial and corporate sectors.

In conclusion, if you’re one of the investors who have incurred losses related to Soleno Therapeutics, now is the time to act. Your participation could be a pivotal step toward corporate responsibility and personal restitution in the unfolding legal scenario.

For further information, reach out to Reed Kathrein at 844-916-0895 or check the Hagens Berman website for updates regarding the case and submission procedures.