Introduction to the Soleno Class Action Lawsuit
- The Soleno class action lawsuit seeks to represent purchasers of Soleno Therapeutics, Inc. (NASDAQ: SLNO) common stock between March 26, 2025 and November 4, 2025, inclusive (the “Class Period”).
- Captioned City of Pontiac Police and Fire Retirement System v. Soleno Therapeutics, Inc., No. 26-cv-01979 (N.D. Cal.), the Soleno class action lawsuit charges Soleno and certain of Soleno’ top current and former executive officers with violations of the Securities Exchange Act of 1934.
- If you suffered substantial losses and wish to serve as lead plaintiff of the Soleno class action lawsuit or just have general questions about you rights as a shareholder, please contact attorney Timothy L. Miles of the Law Offices of Timothy L. Miles, at no cost, by calling 855/846-6529 or via e-mail at [email protected].
- Lead plaintiff motions for the Soleno class action lawsuit must be filed with the court no later than May 5, 2026.
Read on for answers to the eight most frequently asked questions from investors.
1. What Do I Need to Know about the Soleno Class Action Lawsuit?
- Who is Affected by the Soleno class action lawsuit? All purchasers of Soleno Therapeutics, Inc. (NASDAQ: SLNO) common stock between March 26, 2025 and November 4, 2025, inclusive (the “Class Period”).
- The Problem: The Soleno lawsuit alleges the defendant made false and misleading statements driving the stock price artificially up until the truth emerged and the stock plummeted and shareholders who purchased during the relevant time period and suffered a loss are entitle to damages
- Your Action: You may be eligible to recover your losses in a Soleno class action lawsuit
- Deadline to Lead: The deadline to apply to be Lead Plaintiff in the is Soleno class action lawsuit is May 5, 2026.
2. How Does the Soleno Class Action Lawsuit Work?
- A lawsuit is initiated by one or more investors, called the “lead plaintiffs,” on behalf of a larger group of investors, or the “class”.
- The “class period” is defined as the specific timeframe during which the alleged fraudulent activity took place. Only those who bought or sold the security during this period are eligible to participate.
- A lead plaintiff is appointed to represent the class. Under the Private Securities Litigation Reform Act (PSLRA), the court will typically appoint the investor with the largest financial interest in the outcome of the case.
- The case is litigated, which may include a lengthy discovery phase for gathering evidence.
- The case can be settled or go to trial. Most class actions are resolved through settlements, which can include cash or stock paid into a common fund for the class. The lead plaintiff and class counsel approve any settlement before it is finalized.
3. What Do Plaintiffs Have to Prove in the Soleno Class Action Lawsuit?
To succeed in a federal securities fraud class action, plaintiffs must prove several elements:
- Material misstatement or omission: The company made a false or misleading statement, or failed to disclose a material fact.
- Scienter: The defendant acted with an intent to deceive, manipulate, or defraud.
- Reliance: The plaintiff relied on the misstatement or omission when buying or selling the security. For publicly traded securities, this can be proven through the “fraud-on-the-market” theory, which presumes the market price reflects all public, material information.
- Economic loss: The plaintiff suffered a financial loss.
- Loss causation: The company’s misstatement or omission directly caused the plaintiff’s loss, often demonstrated by a stock price drop after the truth is revealed in a “corrective disclosure“
4. What Are the Allegations in the Soleno Class Action Lawsuit?
Soleno is a biopharmaceutical company focused on developing novel therapeutics for the treatment of rare diseases. At the time of the Soleno class action lawsuit’s filing, Soleno’s only commercial product is diazoxide choline extended-release tablets (“DCCR”) for the treatment of hyperphagia in individuals afflicted with Prader-Willi syndrome (“PWS”).
The Soleno class action lawsuit alleges defendants throughout the Class Period failed to disclose that:
- The Soleno Phase 3 clinical trial program for DCCR had systematically downplayed, misrepresented, and/or concealed significant evidence of safety concerns potentially related to the administration of DCCR, including issues related to excess fluid retention in clinical trial participants;
- As a result, the administration of DCCR to treat hyperphagia in individuals with PWS posed materially greater safety risks than disclosed by Soleno or its executives; and
- Consequently, DCCR had materially lower commercial viability and undisclosed risks related to the likelihood of significant and widespread adverse events after its commercial launch, including risks related to patient discontinuation rates, lower patient adoption, prescriber reluctance, adverse regulatory action, and potential reputational and legal fallout.
Scorpion CapitaL Acticle
- On August 15, 2025, the Soleno class action lawsuit alleges that Scorpion Capital LLC published a critical report regarding Soleno, DCCR, and Soleno’s Phase 3 clinical trial program, titled “Russian Roulette With Prader-Willi Children: How The Latest Rare Disease Price-Gouging Scheme Fleeced the FDA, Parents, And Its Own Study Investigators With A Worthless, Toxic Drug; Suspect Data; And Sham Clinical Trials To Push A $500K/Year Knockoff Of A 50-Year-Old Generic Compound – Triggering One Of The Worst Launch Failures And Safety Catastrophes In Post-Approval History.”
- On this news, the price of Soleno common stock declined nearly 12% over two trading days, the Soleno class action lawsuit alleges.
Patient Death
- Then, on September 10, 2025, Soleno filed with the U.S. Securities and Exchange Commission a current event report on Form 8-K disclosing that a patient had died after taking DCCR, the Soleno shareholder lawsuit alleges.
- On this news, the price of Soleno common stock declined approximately 19% over two trading days, the Soleno class action lawsuit alleges.
Disappointing Fiancial Results
- Finally, on November 4, 2025, Soleno reported its financial results for its third fiscal quarter ended September 30, 2025, revealing that the Scorpion Capital Report had caused a “disruption” in DCCR’s launch trajectory and concerns within the PWS community, with a lower number of patient start forms and increased discontinuations beginning after the report’s publication, the Soleno class action alleges.
- On this news, the price of Soleno common stock declined approximately 27%, the Soleno class action lawsuit alleges
What Rights to Investors Have in the Soleno class action lawsuit?
Investors affected by the Soleno class action lawsuit possess specific rights that they can exercise. Understanding these rights is vital for anyone considering involvement in the Soleno class action lawsuit.
Right to Information
- Investors have the right to receive accurate and timely updates regarding the Soleno class action lawsuit.
- This includes information on the case’s progress, potential settlements, and any necessary actions they may need to undertake.
Right to Participate
- Affected investors have the right to join the Soleno class action lawsuit.
- This allows them to collaborate with other investors in seeking compensation for their losses without the burden of filing individual lawsuits.
Right to Legal Representation
- Investors can seek legal counsel to navigate the complexities of the Soleno class action lawsuit.
- Legal professionals can provide guidance and support throughout the process.
- If you suffered substantial losses and wish to serve as lead plaintiff of the Soleno class action lawsuit or just have general questions about you rights as a shareholder, please contact attorney Timothy L. Miles of the Law Offices of Timothy L. Miles, at no cost, by calling 855/846-6529 or via e-mail at [email protected].
6. What Damages Am I Entitled To in the Soleno class action lawsuit?
- In a securities fraud case, the plaintiff’s damages are typically calculated as out-of-pocket losses.
- These losses are expressed as the difference between the price at which the stock was sold and the price at which the stock would have been sold absent any artificial inflation caused by the defendant’s alleged misrepresentations or omissions.
In a securities class action, the calculation of out-of-pocket losses is a crucial element in determining the damages suffered by investors.
- Out-of-pocket losses refer to the actual financial losses experienced by investors as a result of the alleged misconduct of the defendant.
- These losses are typically calculated by comparing the purchase price of the securities with their value at the time of sale or other relevant measure of damages.
- The calculation may also take into account any dividends or other distributions received by the investor during the relevant period. It is important to note that in some cases, the calculation of out-of-pocket losses may be complicated by factors such as market fluctuations or other external events that may have affected the value of the securities.
- In such cases, expert analysis and economic modeling may be employed to determine an accurate estimation of the investor’s losses.
7. What Are the the Benefits of Serving as the Lead Plaintiff in the Soleno Class Action Lawsuit?
Serving as a Lead Plaintiff has several advantages and important benefits.
- First, a Lead Plaintiff is able to negotiate more competitive attorney fees and reduce other litigation costs by actively monitoring the class counsel.
- Second, Lead Plaintiff has the benefit of being able to manage the litigation primarily by overseeing and monitoring the progress of the action and the efforts of counsel, and being able to review and comment on important filings and other documents pertaining to the prosecution of the action.
- Third, there is no financial risk in serving as a Lead Plaintiff because Lead Counsel advances all costs and expenses incurred in the prosecution of the case and will be reimbursed only if there is a successful settlement or judgment recovery on behalf of the class.
- Fourth, Lead Plaintiff has the benefit involved and active in all negotiations relating to any settlement.
- Finally, Lead Plaintiffs that continue owning the stock of the defendant will enjoy the long-term benefits from governance reform resulting from the litigation. Successful lawsuits with large punishments might have a stronger disciplining effect on a defendant’s management and raise awareness of the importance of corporate governance.
8. When Is the Lead Plaintiff Deadline in the Soleno Class Action Lawsuit?
Under the Private Securities Litigation Reform Act (PSLRA), the plaintiff who files the first complaint has 20 days to publish the required notice of the pendency of the action.
- Notice Publication: Not later than 20 days after the complaint is filed, the plaintiff in the Soleno class action lawsuit must publish a notice advising other sharehoders of the pendency of the action.
- Lead Plaintiff Motion Deadline: Not later than 60 days after the date the notice is published.
- Court Consideration: The court must consider motions to consolidate and appoint a lead plaintiff no later than 90 days after the notice is published.
Contact Timothy L. Miles Today About a Soleno Class Action Lawsuit
The most important thing you need to know is you can call me at no charge if you wish to serve as lead plaintiff of the Soleno class action lawsuit, or just have general questions about you rights as a shareholder, please contact attorney Timothy L. Miles of the Law Offices of Timothy L. Miles, at no cost, by calling 855/846-6529 or via e-mail at [email protected]. (24/7/365).
Timothy L. Miles, Esq.
Law Offices of Timothy L. Miles
Tapestry at Brentwood Town Center
300 Centerview Dr. #247
Mailbox #1091
Brentwood,TN 37027
Phone: (855) Tim-MLaw (855-846-6529)
Email: [email protected]
Website: www.classactionlawyertn.com
