Soleno Therapeutics, Inc. (SLNO) Securities Class Action

The litigation focuses on the propriety of Soleno’s repeated statements concerning the safety, efficacy, and commercial prospects of DCCR. These included assurances that the launch of DCCR has been going “really well[]” and “definitely exceeded our expectations.”

More specifically, according to the lawsuit, the Soleno Phase 3 clinical program for DCCR had systematically downplayed, misrepresented, and/or concealed significant evidence of safety concerns potentially related to the administration of DCCR, including issues related to excess fluid retention in clinical trial participants. As a result, the administration of DCCR to treat hyperphagia in individuals with PWS posed significantly greater safety risks than disclosed by Soleno and its executives. The complaint further alleges that, due to the foregoing, DCCR had materially lower commercial viability and undisclosed risks about the likelihood of significant and widespread adverse events after its commercial launch.

Investors began to learn the truth back on August 15, 2025, when activist short seller Scorpion Capital raised questions about Soleno's disclosures and made several observations regarding VYKAT™ XR.

The firm noted a "rapid pile-up of reports of children hospitalized for potential heart failure" shortly after using the drug, leading Scorpion to conclude that VYKAT™ XR could be at risk of being withdrawn from the market or that new prescriptions might "plunge."

Furthermore, Scorpion alleged that Soleno's "launch metrics are hocus-pocus," claiming that the company was highly dependent on a "controversial physician" in Gainesville, Florida, who was the lead investigator on key trials. The report suggested this physician might be an "invisible hand fueling initial start forms."

Finally, Scorpion raised concerns about the physician's co-authored papers, alleging that they "exhibit irregularities consistent with red flags for data integrity and adherence to scientific standards, casting doubt onto the validity of SLNO’s trials, publications, and FDA submissions."

Most recently, during Soleno’s November 4, 2025 Q3 2025 earnings call, the company’s management revealed that “we did see a disruption in our launch trajectory in the wake of a short seller report that was released in August, mostly in the form of a lower number of start forms and increased discontinuations for non-serious adverse events.”

Since August 14, 2025 (the day before Scorpion published its report), by November 5, 2025 the price of Soleno shares has fallen nearly 40%.

FREQUENTLY ASKED QUESTIONS ABOUT THE CASE

What is the SLNO investigation about?

We are investigating whether Soleno may have misled investors about the support it has said it has about the commercial prospects of VYKAT™ XR.

WHAT SHOULD I DO?

I worked at SLNO. What should I do?

If you were an employee of SLNO, you may have valuable information that could be relevant to the investigation. Hagens Berman is one of the nation’s top whistleblower law firms, and has successfully represented many individuals who come forward with information regarding corporate malfeasance. Under the new SEC Whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, contact Reed Kathrein at 844-916-0895 or [email protected].

There are multiple law firms participating, do I need to contact all of them?

No, you do not need to contact all participating law firms. Generally, class-action investigations and lawsuits are consolidated into a single case to streamline the legal process, and attorneys from only a few law firms are selected to serve in a leadership role on the consolidated case. Hagens Berman has a proven track record of being appointed to leadership roles in complex, multidistrict litigation regarding investor fraud and other consumer rights issues, and your claim will be handled by attorneys who have helped secure approximately $325 billion in class-action settlements on behalf of individuals who have suffered due to corporate malfeasance and the wrongdoing of other powerful institutions.

AM I ELIGIBLE?

What is the threshold amount to be eligible? What are “substantial” losses?

The threshold amount and the definition of "substantial" losses may vary depending on a number of factors specific to the case, including the size of the company, market cap, shares outstanding and who holds them and the damages alleged by the fraud. In general, to be eligible to participate in a class-action lawsuit, you must be able to demonstrate that you suffered financial losses as a result of the alleged wrongdoing and that your losses meet the criteria set by the court or law firm. Fill out the form and submit your losses.

CAN I PARTICIPATE?

Am I affected? What do I need to do to participate?

If you were an investor in SLNO, you may be affected and eligible to participate in the case. To determine your eligibility and potential involvement, fill out the form and submit your losses.

Can any SLNO investor participate?

In most class-action investigations and cases, any investor who meets the eligibility criteria, including purchasing the shares during the relevant period, can participate, regardless of the size of their investment. Fill out the form to find out your rights.

I bought on a non-U.S. Exchange. Can I participate?

No. This investigation only covers shares bought on a U.S. exchange, i.e. NASDAQ or NYSE. Fill out the form to find out your rights.

Am I included if I still hold my shares, or do I need to sell to participate?

Participation is based on purchasing shares during the relevant period, rather than your current holdings. Accordingly, you do not need to sell to participate. Fill out the form to find out your rights.