Soleno Therapeutics, Inc. (NASDAQ: SLNO)

This lawsuit is for anyone who acquired securities in Soleno Therapeutics, Inc. (NASDAQ: SLNO) from March 26, 2025 through November 4, 2025.

The lawsuit alleges that the Company and certain of its executives violated federal law. Specifically, the lawsuit alleges that, throughout the time period mentioned above, the Company misled investors regarding its financial condition. More specifically, the lawsuit alleges that the Company lied about the safety that its diazoxide choline tablet was showing in clinical trials.

On August 15, 2025, activist investor organization Scorpion Capital LLC published a 415-page report regarding Soleno entitled “Russian Roulette With Prader-Willi Children: How The Latest Rare-Disease Price-Gouging Scheme Fleeced the FDA, Parents, And Its Own Study Investigators With A Worthless, Toxic Drug.” The report alleges a number of problems with the Company’s diazoxide choline tablet (“DCCR”), including clinical trial conduct, safety and efficacy concerns, and patient reports of serious adverse reactions following its commercial launch. On this news, the price of the Company’s stock dropped precipitously on unusually heavy trading volume. Then, on September 10, 2025, Soleno filed a Form 8-K with the U.S. Securities and Exchange Commission disclosing that a patient had died after taking DCCR. On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume. Finally, on November 4, 2025, Soleno reported its third quarter 2025 financial results, revealing that the Scorpion Capital report had disrupted DCCR’s launch trajectory and raised concerns within the Prader-Willi syndrome community, in part resulting in a lower number of patient start forms and increased discontinuations beginning after the report’s publication. On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume.

The Law Offices of Howard G. Smith seeks to recover damages on behalf of class members. If you acquired securities in Soleno Therapeutics, Inc. (NASDAQ: SLNO) from March 26, 2025 through November 4, 2025 you may join the lawsuit by submitting your information online, or you may call the Law Offices of Howard G. Smith and speak to Mr. Smith directly to learn how he can protect your rights.