Soleno Therapeutics (SLNO) Drops Amid Critical Scorpion Report -- Hagens Berman

SAN FRANCISCO, Aug. 20, 2025 /PRNewswire/ -- On August 15, 2025, shares in Soleno Therapeutics, Inc. (NASDAQ: SLNO) experienced a significant drop following the release of a highly critical report by Scorpion Capital.

Hagens Berman, a national shareholders rights firm, has opened an investigation into Soleno. The firm will investigate whether Soleno may have misled investors about VYKAT™ XR. The drug, a once-daily oral tablet, is designed to treat hyperphagia. Soleno has described this condition as "the most life-limiting aspect" of Prader-Willi syndrome, a rare genetic disorder that causes physical, mental, and behavioral problems.

The firm urges investors in Soleno who suffered significant losses to submit your losses now.

Visit: www.hbsslaw.com/investor-fraud/slno
Contact the Firm Now: [email protected]
                                        844-916-0895

Soleno Therapeutics, Inc. (SLNO) Investigation:

The investigation is focused on the propriety of Soleno's statements concerning the safety and commercial prospects of VYKAT^™ XR and its repeated assurances about the commercial prospects for it. 

On August 15, 2025, Soleno's disclosures came under question with the publication of a forensic research report by activist short seller Scorpion. In its report, Scorpion made several observations regarding VYKAT™ XR.

The firm noted a "rapid pile-up of reports of children hospitalized for potential heart failure" shortly after using the drug, leading Scorpion to conclude that VYKAT™ XR could be at risk of being withdrawn from the market or that new prescriptions might "plunge."

Scorpion further described Soleno as a "one-trick pony" with no other "meaningful assets, pipeline or scientific program." The report characterized Soleno's sole drug as an "inferior tablet version of a half-century old suspension," highlighting the risk of the company's demise if VYKAT™ XR were to fail, given that its core patent was set to expire in 2026.

Furthermore, Scorpion alleged that Soleno's "launch metrics are hocus-pocus," claiming that the company was highly dependent on a "controversial physician" in Gainesville, Florida, who was the lead investigator on key trials. The report suggested this physician might be an "invisible hand fueling initial start forms."

Finally, Scorpion raised concerns about the physician's co-authored papers, alleging that they "exhibit irregularities consistent with red flags for data integrity and adherence to scientific standards, casting doubt onto the validity of SLNO's trials, publications, and FDA submissions."

This news drove the price of Soleno shares sharply lower on August 15, 2025.

"We're investigating whether Soleno may have misled investors about the support it has said it has about the commercial prospects of VYKAT^™ XR," said Reed Kathrein, the Hagens Berman partner leading the investigation.

If you invested in Soleno and have substantial losses, or have knowledge that may assist the firm's investigation, submit your losses now »

If you'd like more information and answers to frequently asked questions about the Soleno investigation, read more »

Whistleblowers: Persons with non-public information regarding Soleno should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].

About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman's team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.

SOURCE Hagens Berman Sobol Shapiro LLP