Soleno Therapeutics Hit with Securities Fraud Lawsuit

Investors Have Until May 5, 2026 to Seek Lead Plaintiff Status

Mar. 15, 2026 at 2:46am

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A securities fraud class action lawsuit has been filed against Soleno Therapeutics, Inc. (NASDAQ: SLNO) on behalf of investors who purchased or acquired Soleno common stock between March 26, 2025, and November 4, 2025. The lawsuit alleges that Soleno made material misstatements and/or omissions concerning the company's Phase 3 clinical trial program for its drug diazoxide choline extended-release tablets (DCCR) for the treatment of hyperphagia in individuals with Prader-Willi syndrome.

Why it matters

The lawsuit alleges that Soleno downplayed, misrepresented, and/or concealed significant evidence of safety concerns related to DCCR, which could impact the drug's commercial viability and lead to widespread adverse events after its launch. This raises concerns about Soleno's transparency and the risks associated with DCCR.

The details

The complaint alleges that Soleno misrepresented and/or failed to disclose that: (1) the Phase 3 clinical trial program for DCCR had systematically downplayed, misrepresented, and/or concealed significant evidence of safety concerns potentially related to excess fluid retention in clinical trial participants; (2) the administration of DCCR posed materially greater safety risks than disclosed; (3) DCCR had materially lower commercial viability and undisclosed risks related to patient discontinuation rates, lower patient adoption, prescriber reluctance, adverse regulatory action, and potential reputational and legal fallout; and (4) Soleno's statements about its business, operations, and prospects were materially false and misleading.

  • The class period is from March 26, 2025, through November 4, 2025.
  • The deadline to file for lead plaintiff status is May 5, 2026.

The players

Soleno Therapeutics, Inc.

A pharmaceutical company focused on developing therapies for rare diseases, headquartered in Redwood City, California.

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What they’re saying

“If you purchased or acquired Soleno common stock and have lost money on your investment, you are encouraged to contact KTMC attorney Jonathan Naji, Esq.”

— Jonathan Naji, Attorney, Kessler Topaz Meltzer & Check, LLP

What’s next

The judge will decide on May 5, 2026 whether to allow the lawsuit to proceed as a class action.

The takeaway

This case highlights the importance of pharmaceutical companies being transparent about the safety and risks associated with their drug candidates, especially in clinical trials. Investors will be closely watching the outcome of this lawsuit and its potential impact on Soleno's future.