A securities class action has been filed against Soleno Therapeutics, Inc. (SLNO) on behalf of all purchasers of Soleno common stock between March 26, 2025 through November 4, 2025. This case has been filed in the USDC – NDCA.
In September 2025, after the FDA cleared VYKAT™ XR, Soleno highlighted to investors that the product rollout was performing strongly and surpassing internal expectations.
However, on Soleno’s November 4, 2025, third-quarter earnings call, the company discussed challenges that emerged during the launch period, noting a slowdown in new treatment initiations and an uptick in therapy discontinuations tied to non-serious adverse events. Management also acknowledged that the launch trajectory had been affected by external commentary published earlier in the year.
On August 15, 2025, short seller Scorpion Capital issued a report raising a number of concerns about VYKAT™ XR and Soleno’s commercialization plans. Among other assertions, the report questioned the safety profile of the drug, the sustainability of demand, and the concentration of early prescribing activity. Scorpion further criticized Soleno’s business model as being highly reliant on a single product with intellectual property protection expected to mature in the near term. The report additionally suggested that certain clinical research associated with the product warranted further scrutiny.
Following the release of the Scorpion report on August 15, 2025, Soleno’s stock price experienced significant volatility. Between August 14, 2025, and November 5, 2025, the Company’s share price declined by nearly 40%.