#United States #Class Action #Redwood City #Soleno Therapeutics #SLNO

Overview of the Class Action Lawsuit

Soleno Therapeutics, Inc., a pharmaceutical company based in Redwood City, California, is facing a class action lawsuit related to securities fraud. This lawsuit stems from allegations of misleading statements and significant omissions related to the company’s ubiquitous product, diazoxide choline extended-release tablets (DCCR), which are intended for treating hyperphagia in patients with Prader-Willi syndrome (PWS).

The lawsuit was initiated on behalf of investors who purchased or acquired Soleno common stock between March 26, 2025, and November 4, 2025. The deadline for investors wishing to seek lead plaintiff status in this class action is May 5, 2026. If you're one of the investors concerned, it is crucial to take action before this date.

Details of the Allegations

The complaint accuses Soleno Therapeutics and its executives of making materially false and/or misleading claims about the safety and efficacy of DCCR. It alleges that throughout the investment class period, the company downplayed and concealed serious safety concerns regarding the drug's administration during its Phase 3 clinical trial. Specifically, the lawsuit claims:

1. Significant evidence indicating safety risks, especially concerning excess fluid retention in clinical trial participants, was not disclosed.
2. The use of DCCR posed greater safety risks than what Soleno management communicated to the public.
3. The commercial viability of DCCR was misunderstood with underreported risks related to potential adverse effects, which could affect patient retention and adoption rates among prescribers and patients alike.
4. Due to these circumstances, all prior statements made by the company about its business outlook were rendered false and misleading.

The Impact on Investors

On November 4, 2025, Soleno released financial results for its third fiscal quarter, revealing that a report from Scorpion Capital had disrupted the launch trajectory of DCCR. The report heightened concerns among the PWS community, leading to lower patient start forms and increased discontinuation rates. Following this revelation, Soleno’s stock plummeted, declining over 26%.

This drastic decline raises serious questions about the company's transparency and risk management, prompting investors to reassess their positions and the validity of their claims against Soleno.

What Affected Investors Should Do

If you are among the investors who bought stock during the specified period and suffered losses, here's what you can do:

• - File for Lead Plaintiff Status: If you wish to lead the class, you must do so by the May 5, 2026 deadline. This allows you to represent all affected parties in the lawsuit.
• - Consult with Legal Counsel: Reaching out to Kessler Topaz Meltzer & Check, LLP offers a way to discuss your options without any upfront payments. They provide contingency-based legal representation at no cost until a recovery is achieved.
• - Understand Your Rights: It's essential to be informed about your legal rights and the implications of being part of a class action. Remaining an absent class member is also an option.

Conclusion

The Soleno Therapeutics case presents a significant opportunity for affected investors to seek restitution for their losses due to alleged misleading practices by the company. As the deadline approaches, it is vital to act promptly to ensure your rights are protected in this class action lawsuit. To take the necessary steps, contact the legal team at Kessler Topaz Meltzer & Check, LLP for guidance and support regarding your potential involvement in this pivotal case.

For more information, you can visit KTMC or contact attorney Jonathan Naji directly.

Stay informed and proactive as this case unfolds, particularly if you are a part of the Soleno Therapeutics investor community.