Soleno Therapeutics Investors Seek Lead Plaintiff in Class Action

Hagens Berman law firm says investors have until May 5, 2026 to join lawsuit over alleged safety issues and inflated launch metrics for Soleno's Prader-Willi drug

Apr. 13, 2026 at 11:44pm

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A high-contrast, close-up image of complex medical equipment, conveying the heavy, industrial nature of the pharmaceutical business and the weighty financial and regulatory forces at play.An investigation into alleged safety lapses and inflated launch metrics raises troubling questions about transparency and accountability in the pharmaceutical industry.Gainesville Today

A securities class action lawsuit has been filed against Soleno Therapeutics, Inc. (NASDAQ: SLNO) alleging the company misled investors about the safety and commercial viability of its flagship drug VYKAT™ XR (DCCR) for treating Prader-Willi syndrome. The lawsuit claims Soleno downplayed evidence of safety concerns, relied on questionable clinical trial data, and inflated launch metrics to maintain an inflated stock price. Investors who purchased Soleno stock between March 26, 2025 and November 4, 2025 and suffered significant losses have until May 5, 2026 to seek lead plaintiff status in the case.

Why it matters

The Soleno case highlights growing concerns about pharmaceutical companies potentially sidestepping safety protocols and using dubious marketing tactics to drive up stock prices. If the allegations are true, it could undermine trust in the drug development process and raise questions about regulatory oversight. The outcome of the lawsuit could also have broader implications for investors burned by overhyped biotech stocks.

The details

The class action lawsuit alleges that throughout the Class Period, Soleno misled investors by failing to disclose: 1) significant evidence of safety concerns with DCCR, including excess fluid retention and potential heart failure in children; 2) irregularities in the data from Soleno's Phase 3 clinical trials that raised integrity red flags; and 3) that the initial 'start forms' for DCCR's commercial launch were artificially inflated rather than reflecting genuine market demand.

  • The Class Period spans from March 26, 2025 to November 4, 2025.
  • On August 15, 2025, a report by activist short seller Scorpion Capital triggered a double-digit stock decline by detailing adverse patient reactions and investigator skepticism.
  • On November 4, 2025, Soleno reported Q3 2025 results, acknowledging a disruption in DCCR's launch and lower patient start forms, causing the stock to plummet 27% in a single day.

The players

Soleno Therapeutics, Inc.

A biopharmaceutical company focused on the development and commercialization of novel therapeutics for the treatment of rare diseases.

Scorpion Capital

An activist short-selling firm that published a critical report on Soleno's clinical trials and drug launch metrics.

Reed Kathrein

The Hagens Berman partner leading the firm's investigation into the alleged claims against Soleno.

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What they’re saying

“Our investigation centers on the complaint's claims that Soleno allegedly bypassed critical safety protocols and used questionable metrics to maintain an inflated stock price.”

— Reed Kathrein, Hagens Berman partner

What’s next

Investors who purchased Soleno stock during the Class Period and suffered significant losses have until May 5, 2026 to petition the Court to serve as lead plaintiff in the class action lawsuit.

The takeaway

The Soleno case highlights the need for greater transparency and accountability in the pharmaceutical industry, as allegations of sidestepping safety protocols and inflating launch metrics could undermine public trust and have broader implications for biotech investors.