Soleno Therapeutics(US:SLNO) Globenewswire·2026-03-10 01:16Core Viewpoint - A securities class action lawsuit has been filed against Soleno Therapeutics, Inc. for allegedly misleading investors regarding the safety and efficacy of its drug DCCR (VYKAT™ XR) intended for treating hyperphagia associated with Prader-Willi Syndrome [1][4]. Company Overview - Soleno Therapeutics, Inc. is facing legal scrutiny following a significant drop in its stock price after a disappointing report on DCCR, which led to a 26% selloff on November 5, 2025 [2][4]. - The lawsuit claims that Soleno made repeated false statements about the safety and commercial prospects of DCCR, which included assurances of a successful launch that did not align with the actual market performance [4]. Legal Proceedings - The class action lawsuit seeks to represent investors who purchased Soleno common stock between March 26, 2025, and November 4, 2025, with a lead plaintiff deadline set for May 5, 2026 [1][3]. - Hagens Berman, a national shareholders rights firm, is investigating whether Soleno violated federal securities laws and is encouraging affected investors to come forward [3][6]. Market Reaction - The market reacted negatively to the news about DCCR, with Soleno's stock price falling nearly 40% from August 14, 2025, to November 5, 2025, following critical reports from activist short seller Scorpion Capital [5]. - Scorpion Capital raised concerns about the drug's safety, citing reports of children hospitalized for potential heart failure after using VYKAT™ XR, and questioned the integrity of Soleno's clinical trial data [5]. Financial Implications - The lawsuit highlights that DCCR may have lower commercial viability than previously disclosed, with significant undisclosed risks regarding adverse events post-launch [4]. - The investigation by Hagens Berman aims to determine the extent of potential misrepresentation by Soleno regarding the drug's commercial prospects [6].