Soleno Therapeutics(US:SLNO) Prnewswire·2026-03-09 19:23Core Viewpoint - A class action lawsuit has been filed against Soleno Therapeutics, Inc. for allegedly misleading investors about the safety and efficacy of its drug DCCR during its Phase 3 clinical trial [1] Company Overview - Soleno Therapeutics is a pharmaceutical company focused on developing therapies for rare diseases, with its only commercial product being diazoxide choline extended-release tablets (DCCR) for treating hyperphagia in individuals with Prader-Willi syndrome (PWS) [1] Allegations - The lawsuit claims that Soleno failed to disclose significant safety concerns related to DCCR, including issues of excess fluid retention in clinical trial participants [1] - It is alleged that the administration of DCCR posed materially greater safety risks than disclosed, leading to lower commercial viability and undisclosed risks of adverse events post-launch [1] Impact on Stock Price - Following the release of a report by Scorpion Capital on August 15, 2025, which detailed concerns about Soleno's clinical trial conduct, the stock price declined nearly 12% over two trading days [1] - After a patient death was reported on September 10, 2025, the stock fell nearly 19% over two trading days [1] - On November 4, 2025, after reporting third-quarter financial results, the stock price dropped approximately 27% from nearly $64 per share to about $47 per share in one day [1]