SLNO Investor Alert: Soleno Therapeutics, Inc. Securities Fraud Lawsuit - Investors With Losses May Seek to Lead the Class Action After Management Allegedly Concealed Drug Risks: Levi & Korsinsky

Notice to Pension Funds, Asset Managers, and Fiduciaries

NEW YORK, March 30, 2026 (GLOBE NEWSWIRE) -- Institutional investors holding positions in Soleno Therapeutics, Inc. (NASDAQ: SLNO) during the period March 26, 2025 through November 4, 2025 may wish to evaluate lead plaintiff opportunities in a pending securities class action. Request an institutional investor loss assessment. You may also contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com or (212) 363-7500.

Soleno's sole commercial product, VYKAT XR (diazoxide choline extended-release tablets), was approved by the FDA on March 26, 2025 to treat hyperphagia in individuals with Prader-Willi syndrome. A securities class action filed in the U.S. District Court for the Northern District of California alleges the Company and certain officers concealed material safety risks associated with DCCR throughout the Class Period. The Court has set May 5, 2026 as the deadline to apply for lead plaintiff appointment.

Notice to Institutional Holders

Pension funds, mutual funds, hedge funds, and other institutional investors that acquired SLNO shares between March 26, 2025 and November 4, 2025 may have fiduciary obligations to evaluate whether pursuing a lead plaintiff role serves the interests of their beneficiaries. The Private Securities Litigation Reform Act of 1995 ("PSLRA") generally favors institutional investors with the largest financial interest in the relief sought by the class.

ERISA and Fiduciary Considerations

The lawsuit contends that Soleno and its officers made materially misleading statements regarding DCCR's safety profile and commercial viability while concealing evidence of serious adverse events, including excess fluid retention, elevated diabetes risk, and patient reports of pulmonary edema symptoms. Key fiduciary considerations include:

Fiduciaries managing portfolios that held SLNO shares during the Class Period should assess whether participation in the class action is consistent with their duty of prudence
The PSLRA's lead plaintiff presumption favors the movant with the largest financial interest, typically an institutional holder
Lead plaintiffs select and oversee class counsel, shaping litigation strategy and settlement terms on behalf of all class members
Institutional lead plaintiffs incur no out-of-pocket costs; attorneys' fees are paid from any recovery obtained for the class
Institutional investors who do not seek lead plaintiff status remain absent class members and retain the right to share in any recovery
The secondary public offering of over 2.7 million shares at $85 per share in July 2025 may have concentrated institutional exposure during a period of alleged material misrepresentation

Portfolio Impact Assessment

The action claims that the Company's representations about DCCR's "favorable safety and tolerability profile" and purported lack of "new safety signals" in the post-marketing setting were materially misleading. As alleged, problems with Soleno's Phase 3 clinical trial program included downplaying safety concerns related to fluid retention and hyperglycemia risk, while trial investigators broadly expressed skepticism about the drug's safety and efficacy.

"Institutional investors play a critical role in securities class actions. Their participation as lead plaintiffs helps ensure that the interests of all class members are vigorously represented and that litigation proceeds efficiently toward maximum recovery." -- Joseph E. Levi, Esq.

Case Summary

The securities action alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of all purchasers of Soleno common stock between March 26, 2025 and November 4, 2025. According to the complaint, corrective information began to emerge on August 15, 2025 when an activist research firm published a detailed report identifying systemic problems with Soleno's clinical trial conduct, widespread adverse patient reactions, and investigator skepticism about DCCR.

INSTITUTIONAL INVESTOR REPRESENTATION -- Levi & Korsinsky, LLP provides sophisticated counsel to institutional investors evaluating lead plaintiff opportunities. The firm has recovered hundreds of millions of dollars. Ranked among 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

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