The Law Offices of Frank R. Cruz announces an investigation of Soleno Therapeutics, Inc. (“Soleno” or the “Company”) (NASDAQ: SLNO) on behalf of investors concerning the Company’s possible violations of federal securities laws.

What Is The Investigation About?

On August 15, 2025, activist investor organization Scorpion Capital LLC published a 415-page report regarding Soleno entitled “Russian Roulette With Prader-Willi Children: How The Latest Rare-Disease Price-Gouging Scheme Fleeced the FDA, Parents, And Its Own Study Investigators With A Worthless, Toxic Drug.” The report alleges a number of problems with the Company’s diazoxide choline tablet (“DCCR”), including clinical trial conduct, safety and efficacy concerns, and patient reports of serious adverse reactions following its commercial launch.

On this news, the price of Soleno stock declined $9.27 per share, or 11.98%, over two trading days to close at $68.09 on August 18, 2025, thereby injuring investors.

Then, on September 10, 2025, Soleno filed a Form 8-K with the U.S. Securities and Exchange Commission disclosing that a patient had died after taking DCCR.

On this news, the price of Soleno stock declined $13.49 per share, or 19.21%, over two trading days to close at $56.72 on September 11, 2025, thereby further injuring investors.

Finally, on November 4, 2025, Soleno reported its third quarter 2025 financial results, revealing that the Scorpion Capital report had disrupted DCCR’s launch trajectory and raised concerns within the Prader-Willi syndrome community, in part resulting in a lower number of patient start forms and increased discontinuations beginning after the report’s publication.

On this news, the price of Soleno stock declined $16.98 per share, or 26.59% to close at $46.87 on November 5, 2025, thereby further injuring investors.