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Class action lawsuit filed against Soleno Therapeutics over issues with DCCR drug trial and launch

Mar. 12, 2026 at 5:04pm

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A class action lawsuit has been filed against Soleno Therapeutics, Inc. on behalf of investors who purchased or acquired Soleno securities between March 26, 2025 and November 4, 2025. The lawsuit alleges that Soleno downplayed and misrepresented significant safety concerns related to its DCCR drug for treating Prader-Willi syndrome, which led to a disruption in DCCR's launch and a significant drop in Soleno's stock price.

Why it matters

This case highlights the importance of transparency and accurate disclosure from pharmaceutical companies, especially those developing drugs for rare diseases. Investors rely on this information to make informed decisions, and any misleading or incomplete information can have serious financial consequences.

The details

According to the complaint, a report published by Scorpion Capital in August 2025 detailed issues with Soleno's clinical trial conduct, safety and efficacy concerns with DCCR, and patient reports of serious adverse reactions. This caused a disruption in DCCR's launch and a drop in Soleno's stock price. The lawsuit alleges that Soleno failed to disclose the full truth about DCCR's safety data and risks.

  • On August 15, 2025, Scorpion Capital published a critical report on Soleno and DCCR.
  • On August 18, 2025, Soleno's stock price declined nearly 12% over two trading days.
  • On November 4, 2025, Soleno reported that the Scorpion Capital report had caused a 'disruption' in DCCR's launch.
  • On November 5, 2025, Soleno's stock price declined approximately 27% in one day.

The players

Soleno Therapeutics, Inc.

A biopharmaceutical company developing treatments for rare diseases, including Prader-Willi syndrome.

Scorpion Capital LLC

An investment research firm that published a critical report on Soleno and its DCCR drug.

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What’s next

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

The takeaway

This case highlights the importance of pharmaceutical companies being fully transparent about the safety and efficacy of their drugs, especially for rare diseases where patients and their families are relying on these treatments. Investors must be able to make informed decisions based on accurate information.