Investor Concerns Rise as Pomerantz Law Firm Investigates Soleno Therapeutics for Fraud Allegations
Investor Alert: Pomerantz Law Firm's Investigation into Soleno Therapeutics
The legal landscape surrounding Soleno Therapeutics, Inc. (NASDAQ: SLNO) has become increasingly turbulent as Pomerantz LLP, a renowned law firm, initiates an investigation into the company following alarming allegations from investors. This inquiry centers on whether Soleno and its management have engaged in securities fraud or other nefarious business practices that have adversely impacted investors.
Background on Soleno Therapeutics
Soleno is principally known for its singular product, Vykat XR, which is aimed at treating certain conditions in children. However, this initiative has faced substantial scrutiny following a report published on August 15, 2025, by Scorpion Capital. The report claimed that Vykat XR was overpriced and raised concerns regarding its safety, specifically in pediatric usage. Following these claims, Soleno's stock price plummeted by $5.73 per share, equating to a 7.41% decline, indicating immediate investor reaction to the negative press.
In a further blow to investor confidence, Soleno's CEO disclosed in a November 4, 2025, earnings conference that there was a notable 8% discontinuation rate for Vykat XR due to adverse effects reported by users. The CEO attributed part of this disruption to the fallout from the Scorpion report, stating that it significantly impacted the product's launch trajectory.
As a result of these revelations, Soleno's stock saw an even steeper decline, dropping $16.98 per share or 26.59%, to close at $46.87 per share on November 5, 2025. This trend highlights the volatile nature of investor sentiment and the ramifications that regulatory and safety concerns can have on stock market performance.
The Role of Pomerantz LLP
Pomerantz LLP is well-recognized for its commitment to protecting the rights of investors and has a long history of fighting for justice in cases involving corporate malfeasance. Founded by Abraham L. Pomerantz, a pioneer in the area of securities class actions, the firm has continually acted on behalf of shareholders who feel wronged by corporate misconduct.
The investigation aims to determine whether Soleno’s management misled investors regarding Vykat XR’s safety and pricing—issues that could have fueled the stock's sharp decline. For investors who may have experienced losses due to these events, legal recourse through a class action lawsuit could be a viable option. Pomerantz is urging stockholders to reach out for further information regarding their rights and potential compensation.
Legal Implications and Next Steps
Investors are advised to consider their positions and gather relevant information regarding their holdings in Soleno Therapeutics. Discussions are ongoing at Pomerantz, providing a platform for those potentially affected by these allegations to share their experiences and seek the justice they deserve. Interested individuals can contact Danielle Peyton through the specified channels for further assistance and guidance on joining the class action.
In conclusion, the unfolding events concerning Soleno Therapeutics and Pomerantz Law Firm's investigation underline the critical need for transparency in the pharmaceutical industry, particularly when it involves vulnerable populations such as children. As this case progresses, all eyes will be on both the legal proceedings and the company's ability to restore faith among its investors.
For more information on this developing story, stakeholders are encouraged to monitor updates from both Soleno and the Pomerantz Law Firm, as the implications of these findings could reach far beyond the immediate financial landscape and impact future investments in the pharmaceuticals sector.