Soleno Therapeutics Faces Securities Fraud Investigations
Analysis based on 17 articles · First reported Mar 10, 2026 · Last updated Mar 10, 2026
The market is negatively impacted by the allegations against Soleno Therapeutics, leading to significant declines in its stock price. The investigations by multiple law firms indicate potential legal liabilities and further uncertainty for Soleno Therapeutics, affecting investor confidence in the pharmaceutical sector.
Soleno Therapeutics is under investigation by multiple law firms for alleged violations of federal securities laws. This follows a critical report published by activist investor Scorpion Capital on August 15, 2025, which detailed problems with Soleno's drug, diazoxide choline tablet (DCCR), including clinical trial conduct, safety, and efficacy concerns. The report's publication led to an 11.98% decline in Soleno's stock. Subsequently, on September 10, 2025, Soleno filed a Form 8-K with the United States===United States Securities and Exchange Commission, disclosing a patient death after taking DCCR, causing another 19.21% stock drop. On November 4, 2025, Soleno's Q3 2025 financial results revealed that the Scorpion Capital report had disrupted DCCR's launch and raised concerns in the Prader-Willi syndrome community, resulting in a further 26.59% decline in stock price. Law firms like The Law Offices of Frank R. Cruz, Law Offices of Howard G. Smith, and Glancy Prongay and Wolke are now investigating on behalf of investors.
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