Soleno Therapeutics Faces Shareholder Lawsuit

Bernstein Liebhard LLP files class action against biotech firm over alleged disclosure failures.

Apr. 2, 2026 at 6:33pm

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Bernstein Liebhard LLP, a prominent national law firm, has filed a class action lawsuit against Soleno Therapeutics, Inc. (NASDAQ: SLNO), a biopharmaceutical company focused on rare diseases. The lawsuit alleges that Soleno failed to properly disclose material information to shareholders regarding its lead drug candidate, potentially misleading investors.

Why it matters

Shareholder lawsuits against public companies can have significant financial and reputational consequences, potentially impacting the company's stock price, operations, and ability to raise future funding. This case highlights the importance of transparent and accurate disclosures, especially for biotech firms developing treatments for rare diseases.

The details

The lawsuit alleges that Soleno Therapeutics failed to disclose issues with the development and regulatory approval process for its lead drug candidate, DCCR, which is being evaluated for the treatment of Prader-Willi syndrome. The complaint claims that Soleno misled investors about the likelihood of DCCR receiving FDA approval, leading to artificially inflated stock prices.

  • The lawsuit was filed on April 2, 2026.

The players

Bernstein Liebhard LLP

A nationally recognized law firm that specializes in securities class action lawsuits and has filed numerous high-profile cases against public companies.

Soleno Therapeutics, Inc.

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

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What they’re saying

“We allege that Soleno Therapeutics failed to properly disclose material information to shareholders, potentially misleading investors about the prospects for its lead drug candidate.”

— Stanley Bernstein, Partner, Bernstein Liebhard LLP

What’s next

The court will determine if the lawsuit can proceed as a class action, and a trial date may be set in the coming months.

The takeaway

This lawsuit underscores the importance of transparency and accurate disclosures, especially for biotech companies developing treatments for rare diseases. Investors will be closely watching the outcome of this case, which could have broader implications for the industry.