Soleno Therapeutics Sued in Federal Securities Class Action Over DCCR Safety Disclosures

Investors have until May 5, 2026 to seek lead-plaintiff status in a case alleging misstatements about the Prader–Willi syndrome drug’s risks.

Overview

The lawsuit, City of Pontiac Police and Fire Retirement System v. Soleno Therapeutics, No. 3:26-cv-01979, was filed in the Northern District of California for investors who bought shares between March 26 and November 4, 2025.
Plaintiffs allege Soleno and certain officers downplayed Phase 3 safety signals for DCCR (VYKAT XR), including excess fluid retention, reducing the drug’s commercial viability; the allegations remain unproven.
An August 15, 2025 report by activist short seller Scorpion Capital raising safety and data concerns preceded a share decline of roughly 7%, according to firm notices.
Soleno disclosed a patient death after DCCR in a September 10, 2025 SEC filing, and on November 4, 2025 reported about an 8% discontinuation rate and a launch “disruption,” after which shares fell approximately 26% on November 5.
Multiple plaintiff firms, including Kessler Topaz, Pomerantz, Schall, Faruqi & Faruqi, DJS, Hagens Berman, the Law Offices of Howard G. Smith, and Kirby McInerney, are soliciting investors ahead of the May 5, 2026 lead‑plaintiff deadline.