Deadline Approaching: Soleno Therapeutics, Inc. (SLNO) Shareholders Who Lost Money Urged To Contact Law Offices of Howard G. Smith
MWN-AI** Summary
The Law Offices of Howard G. Smith has issued a reminder for shareholders of Soleno Therapeutics, Inc. (NASDAQ: SLNO) who suffered financial losses to join the ongoing securities fraud lawsuit. Investors who acquired Soleno’s common stock between March 26, 2025, and November 4, 2026, should be aware of the forthcoming deadline to file a lead plaintiff motion, set for May 5, 2026.
The lawsuit stems from serious allegations against Soleno Therapeutics, particularly following the release of a detailed report by activist investors Scorpion Capital on August 15, 2025. The report accused the company of engaging in fraudulent practices regarding its diazoxide choline tablet (DCCR), claiming significant safety and efficacy concerns linked to the product, especially related to its use in treating Prader-Willi syndrome. This report triggered a sharp decline in Soleno's stock price, as shares fell significantly over the following days due to investor reactions and subsequent disclosures of adverse incidents, including a tragic death associated with DCCR.
The class action lawsuit claims that Soleno and its executives made materially misleading statements and omitted critical safety concerns about DCCR. The filings indicate that these representations misled investors regarding the drug's commercial viability and safety, leading to substantial financial harm when corrections became public.
Investors looking to participate in the lawsuit or obtain further information can contact the Law Offices of Howard G. Smith via phone or email. Despite the ongoing class action, investors are not required to take immediate action to maintain their rights.
MWN-AI** Analysis
As the legal landscape surrounding Soleno Therapeutics, Inc. (NASDAQ: SLNO) unfolds, shareholders who sustained losses during the tumultuous period from March 26, 2025, to November 4, 2025, are faced with a critical decision. The Law Offices of Howard G. Smith are urging affected investors to consider filing a lead plaintiff motion before the upcoming deadline on May 5, 2026. This is a pivotal moment not only for legal recourse but also for strategic financial positioning within the healthcare sector.
Investors must recognize the implications of the recent allegations against Soleno, primarily concerning its diazoxide choline tablet (DCCR). A thorough examination of the claims made by Scorpion Capital LLC highlights severe safety and efficacy concerns, which have already led to significant stock price declines—dropping from $68.09 to $46.87 within months. Such volatility presents a critical juncture for discerning investors evaluating their options in an environment marked by heightened regulatory scrutiny and growing public concern regarding pharmaceutical safety standards.
For current shareholders, a proactive approach could be advantageous. Engaging with legal representation to assess eligibility to join the class-action lawsuit may provide a means to recoup some losses while also signaling to management that shareholder concerns cannot be overlooked. This legal action could potentially catalyze changes within the company or influence its strategic direction going forward.
For potential investors eyeing Soleno, the current downtrend may appear tempting; however, caution is warranted. The ongoing litigation and the scrutiny faced by the company necessitate a cautious evaluation of the risks involved. Investors should closely monitor future disclosures and the outcomes of the lawsuit, as these developments will be crucial in determining the stock's trajectory.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Law Offices of Howard G. Smith reminds investors of the upcoming May 5, 2026 deadline to file a lead plaintiff motion in the case filed on behalf of investors who purchased Soleno Therapeutics, Inc. (“Soleno” or the “Company”) (NASDAQ: SLNO ) common stock between March 26, 2025 and November 4, 2026 , inclusive (the “Class Period”).
IF YOU ARE AN INVESTOR WHO SUFFERED A LOSS IN SOLENO THERAPEUTICS, INC. (SLNO), CONTACT THE LAW OFFICES OF HOWARD G. SMITH TO PARTICIPATE IN THE ONGOING SECURITIES FRAUD LAWSUIT.
Contact the Law Offices of Howard G. Smith to discuss your legal rights by email at howardsmith@howardsmithlaw.com , by telephone at (215) 638-4847 or visit our website at www.howardsmithlaw.com .
What Happened?
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 Soleno stock declined $9.27 per share, or 11.98%, over two trading days to close at $68.09 on August 18, 2025, thereby injuring investors.
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 Soleno stock declined $13.49 per share, or 19.21%, over two trading days to close at $56.72 on September 11, 2025, thereby further injuring investors.
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 Soleno stock declined $16.98 per share, or 26.59% to close at $46.87 on November 5, 2025, thereby further injuring investors.
What Is The Lawsuit About?
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors disclose that: (1) the Soleno Phase 3 clinical trial 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; (2) as a result, the administration of DCCR to treat hyperphagia in individuals with PWS posed materially greater safety risks than disclosed by Soleno or its executives; and (3) consequently, DCCR had materially lower commercial viability and undisclosed risks related to the likelihood of significant and widespread adverse events after its commercial launch, including risks related to patient discontinuation rates, lower patient adoption, prescriber reluctance, adverse regulatory action, and potential reputational and legal fallout; and (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
If you purchased or otherwise acquired Soleno common stock during the Class Period, you may move the Court no later than May 5, 2026 to ask the Court to appoint you as lead plaintiff if you meet certain legal requirements.
Contact Us To Participate or Learn More:
If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us:
Law Offices of Howard G. Smith,
3070 Bristol Pike, Suite 112,
Bensalem, Pennsylvania 19020,
Telephone: (215) 638-4847
Email: howardsmith@howardsmithlaw.com
Visit our website at: www.howardsmithlaw.com .
To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260313183039/en/
Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847
howardsmith@howardsmithlaw.com
www.howardsmithlaw.com
FAQ**
What specific events during the Class Period led to the significant stock price declines for Soleno Therapeutics Inc. (SLNO), and how might these events impact investor claims in the securities fraud lawsuit?
Can you provide details on the material adverse facts that the lawsuit claims were concealed by Soleno Therapeutics Inc. (SLNO) regarding the safety and efficacy of the DCCR drug?
How does the ongoing class action lawsuit against Soleno Therapeutics Inc. (SLNO) address the allegations made in the Scorpion Capital report regarding the clinical trial conduct and safety concerns?
What are the potential legal outcomes for investors who suffered losses in Soleno Therapeutics Inc. (SLNO) if they decide to participate in the class action filing before the May 5, 2026 deadline?
**MWN-AI FAQ is based on asking OpenAI questions about Soleno Therapeutics Inc. (NASDAQ: SLNO).
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