Soleno Therapeutics(US:SLNO) Globenewswire·2026-03-07 01:00Core Viewpoint - The Soleno Therapeutics, Inc. is facing a class action lawsuit due to alleged violations of the Securities Exchange Act of 1934, primarily related to the safety and commercial viability of its product DCCR for treating hyperphagia in Prader-Willi syndrome patients [1][3]. Company Overview - Soleno Therapeutics is a biopharmaceutical company focused on developing novel therapeutics for rare diseases, with its only commercial product being diazoxide choline extended-release tablets (DCCR) [2]. Allegations of the Lawsuit - The lawsuit claims that Soleno and its executives failed to disclose significant safety concerns related to DCCR, including issues of excess fluid retention in clinical trial participants [3]. - It is alleged that the administration of DCCR posed greater safety risks than disclosed, leading to lower commercial viability and undisclosed risks of adverse events post-launch [3]. Impact of External Reports - On August 15, 2025, a critical report by Scorpion Capital LLC led to a nearly 12% decline in Soleno's stock price over two trading days [4]. - Following a report of a patient death associated with DCCR on September 10, 2025, Soleno's stock price dropped approximately 19% over two trading days [5]. - The financial results reported on November 4, 2025, indicated a "disruption" in DCCR's launch trajectory, resulting in a further 27% decline in stock price [6]. Legal Process - Investors who purchased Soleno common stock during the class period can seek appointment as lead plaintiff in the class action lawsuit, which allows them to act on behalf of all class members [7]. - Serving as lead plaintiff is not a requirement for sharing in any potential recovery from the lawsuit [8]. Law Firm Background - Robbins Geller Rudman & Dowd LLP is a leading law firm in securities fraud and shareholder rights litigation, having recovered over $916 million for investors in 2025 alone [9].