Soleno Therapeutics(US:SLNO) Globenewswire·2026-03-17 22:37Core 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) [1][4]. Group 1: Lawsuit Details - The lawsuit seeks to represent investors who purchased Soleno common stock between March 26, 2025, and November 4, 2025 [1][3]. - The lawsuit was triggered by a disappointing report on November 5, 2025, regarding DCCR, which led to a 26% drop in the company's share price [2][4]. Group 2: Allegations Against Soleno - The litigation focuses on Soleno's statements about DCCR's safety, efficacy, and commercial prospects, which were claimed to be misrepresented [4]. - The lawsuit alleges that Soleno downplayed significant safety concerns related to DCCR, including issues of excess fluid retention in clinical trial participants [4]. - It is claimed that DCCR had materially lower commercial viability than disclosed, with undisclosed risks of significant adverse events post-launch [4]. Group 3: Market Reaction and Investor Sentiment - The market reaction began on August 15, 2025, when Scorpion Capital raised concerns about Soleno's disclosures, leading to a nearly 40% decline in share price by November 5, 2025 [5]. - Scorpion Capital highlighted reports of children hospitalized for potential heart failure after using VYKAT™ XR, raising doubts about the drug's market viability [5]. - Soleno's management acknowledged a disruption in their launch trajectory during the Q3 2025 earnings call, attributing it to the negative impact of the short seller report [5].