SLNO Investor Alert: Soleno Therapeutics, Inc. Securities Fraud Lawsuit - Investors With Losses May Seek to Lead the Class Action After Allegedly Hiding Post-Launch Safety Crisis: Levi & Korsinsky

From Optimism to Disillusionment: How Investor Sentiment Shifted

NEW YORK , April 22, 2026 /PRNewswire/ -- Levi & Korsinsky, LLP provides context on the dramatic shift in investor sentiment surrounding Soleno Therapeutics, Inc. (NASDAQ: SLNO) and its only commercial product, VYKAT XR (diazoxide choline extended-release tablets, or DCCR), approved to treat hyperphagia in individuals with Prader-Willi syndrome ("PWS"). A securities class action has been filed on behalf of shareholders who purchased SLNO stock between March 26, 2025 and November 4, 2025. Find out if you are eligible to recover your SLNO investment losses  or contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com  or (212) 363-7500.

Soleno's stock commanded significant investor enthusiasm following the March 26, 2025 FDA approval of VYKAT XR as the first-ever approved therapy for PWS hyperphagia. The Company touted nearly 650 patient start forms, 295 unique prescribers, and $32.7 million in quarterly net revenue, fueling confidence that VYKAT XR would become the standard of care for a rare disease community with no prior approved options.

The Early Optimism

The FDA's approval of VYKAT XR without a boxed warning, REMS requirement, or contraindication for diabetes generated strong initial enthusiasm among shareholders and the PWS community alike. Management characterized the launch as "a very strong start" with "exceptionally encouraging" reception from families and providers. Investors reportedly embraced the narrative that VYKAT XR had a "well-established safety profile" supported by over four years of clinical data.

The Growing Concerns

Beneath the optimistic surface, the lawsuit contends troubling signals were already emerging in online communities where PWS families gather. According to the complaint, the largest Facebook group dedicated to VYKAT XR discussion saw its tone shift from ambivalent to sharply negative during the summer of 2025. Parents began reporting:

• Severe fluid retention causing inability to walk or wear shoes
• Blood sugar levels spiking to pre-diabetic and diabetic ranges
• Hospitalizations for symptoms consistent with potential heart failure
• Decisions to discontinue the drug or active consideration of stopping treatment

The action alleges that the four most-engaged posts in the group during this period were sharply negative, and the ratio of negative and ambivalent commentary to positive reactions suggested the initial wave of adoptions by desperate families was already exhausting itself.

The Breaking Point

On August 15, 2025, Scorpion Capital published a 415-page investigative report alleging that Soleno's clinical trials were fundamentally flawed and that DCCR posed far greater safety risks than the Company had disclosed. The report included interviews with eight of the drug's own trial investigators, the filing states, who broadly characterized VYKAT XR as a failure and expressed reluctance to prescribe it. The report further alleged that DCCR carried high risks of pre-diabetes, diabetes, pulmonary edema, and congestive heart failure, and that Soleno had obscured alarming fluid retention data by conflating it with increases in lean body mass.

Sentiment Arc and Investor Harm

The complaint asserts that the contrast between management's public assurances and the reality experienced by patients and documented by independent researchers represents a material gap that harmed investors. Just nine days before the Scorpion Capital report, management had stated there were "no new safety signals" in the post-marketing setting and that discontinuation rates were "substantially lower than what we saw even in clinical trials." The lead plaintiff deadline is May 5, 2026.

"Investor confidence depends on receiving truthful information from the companies they invest in. When optimism is built on incomplete safety disclosures, the correction can be swift and severe."  -- Joseph E. Levi, Esq.

Speak with a securities attorney about recovering your Soleno losses  or call (212) 363-7500.

Levi & Korsinsky, LLP is a nationally recognized shareholder rights firm. Over the past 20 years, the firm has secured hundreds of millions of dollars for aggrieved shareholders. Ranked in ISS Top 50 for seven consecutive years.

CONTACT:

Levi & Korsinsky, LLP

Joseph E. Levi, Esq.

Ed Korsinsky, Esq.

33 Whitehall Street, 27th Floor

New York, NY 10004

jlevi@levikorsinsky.com

Tel: (212) 363-7500

Fax: (212) 363-7171

View original content to download multimedia: https://www.prnewswire.com/news-releases/slno-investor-alert-soleno-therapeutics-inc-securities-fraud-lawsuit---investors-with-losses-may-seek-to-lead-the-class-action-after-allegedly-hiding-post-launch-safety-crisis-levi--korsinsky-302749875.html

SOURCE Levi & Korsinsky, LLP