Soleno Faces Securities Class Action Over Disclosures on Prader-Willi Drug VYKAT XR

Overview

• Filed in the Northern District of California as City of Pontiac Police and Fire Retirement System v. Soleno Therapeutics, Inc., No. 26-cv-01979, the suit targets statements made between March 26, 2025 and November 4, 2025.
• DCCR, marketed as VYKAT XR for hyperphagia in Prader-Willi syndrome, is the company’s sole commercial product referenced in the complaint.
• Plaintiffs allege Soleno minimized safety signals from its Phase 3 program, including issues tied to excess fluid retention, and overstated the drug’s commercial prospects.
• A September 10, 2025 Form 8-K disclosed a patient death after taking DCCR, and a November 4, 2025 update reported launch disruption with fewer start forms and more discontinuations.
• A Scorpion Capital short-seller report on August 15, 2025 preceded a roughly 12% share drop, followed by about 19% after the 8-K and about 27% after the November update, for a nearly 40% decline by November 5.