Controversy swirls around Soleno Therapeutics.
Heavy allegations have been levelled against biotech company Soleno Therapeutics following the release of a forensic research report by activist short seller Scorpion Capital on August 15, 2025. The report questions the safety and commercial viability of Soleno's only product, VYKAT™ XR, a drug for treating hyperphagia in Prader-Willi syndrome.
The report, totaling about 415 pages, alleges that VYKAT XR is overpriced and potentially unsafe for children. Scorpion Capital accuses Soleno of engaging in a price-fixing scheme for rare diseases, manipulating the FDA, parents, and even the company's own study researchers.
The allegations have caused significant controversy and potential financial impact for Soleno Therapeutics. Following the report's publication, Soleno's share price dropped significantly, falling about 7.41%. This market reaction highlights investor concern and has triggered multiple investigations by shareholder rights firms like Hagens Berman and Pomerantz LLP into whether Soleno misled investors regarding VYKAT™ XR's safety and commercial prospects.
Other law firms, including Holzer & Holzer, LLC, have also announced investigations into the company, reflecting a broad legal scrutiny following the report. Soleno Therapeutics, with a market capitalization of around four billion dollars, has publicly responded, stating that it considers the allegations seriously but has seen no reason for alarm, emphasizing confidence in its product's safety.
The situation remains dynamic as the inquiries by shareholder rights firms progress and the company's response continues. In contrast, the market debut and safety of Vykat have been one of the worst in history, with Soleno Therapeutics Inc.'s stock experiencing a 16 percent decline following the release of Scorpion Capital's report.
This controversy at Soleno Therapeutics echoes recent events at Sarepta Therapeutics, another biotech company. Sarepta Therapeutics has experienced significant stock drops due to deaths associated with their products. Scorpion Capital compares the situation at Soleno Therapeutics to these events at Sarepta, raising further concerns about the biotech industry's regulatory oversight and product safety.
References: [1] Hagens Berman Sobol Shapiro LLP. (2025, August 16). Hagens Berman, national shareholder rights law firm, announces that a class action lawsuit has been filed against Soleno Therapeutics, Inc. on behalf of investors who purchased or otherwise acquired shares of Soleno between March 11, 2021 and August 14, 2025, inclusive (the "Class Period"). Retrieved from https://www.hbsslaw.com/newsroom/press-releases/hagens-berman-sobol-shapiro-llp-announces-that-a-class-action-lawsuit-has-been-filed-against-soleno-therapeutics-inc-on-behalf-of-investors-who-purchased-or-otherwise-acquired-shares-of-soleno-between-march-11-2021-and-august-14-2025-inclusive-the-class-period
[2] Pomerantz LLP. (2025, August 16). Pomerantz LLP announces that a class action lawsuit has been filed against Soleno Therapeutics, Inc. Retrieved from https://www.pomerantzlaw.com/newsroom/press-releases/pomerantz-llp-announces-that-a-class-action-lawsuit-has-been-filed-against-soleno-therapeutics-inc
[3] MarketWatch. (2025, August 15). Soleno Therapeutics Inc. (SLNO) shares fall 7.41% following release of Scorpion Capital report. Retrieved from https://www.marketwatch.com/story/soleno-therapeutics-inc-slno-shares-fall-741-following-release-of-scorpion-capital-report-2025-08-15
[4] Scorpion Capital. (2025, August 15). Scorpion Capital Releases Forensic Research Report on Soleno Therapeutics, Inc. Retrieved from https://scorpioncapital.com/research/soleno-therapeutics-inc/
[5] Holzer & Holzer, LLC. (2025, August 17). Holzer & Holzer, LLC Announces an Investigation of Soleno Therapeutics, Inc. Retrieved from https://www.holzerlaw.com/investigations/soleno-therapeutics-inc/
- The medical-conditions community and health-and-wellness advocates are voiceing concerns about Soleno Therapeutics, following allegations of price-fixing and potential safety issues with their product VYKAT XR.
- In the realm of finance and investing, Soleno Therapeutics has faced a significant drop in share prices, amounting to nearly 16%, since the publication of the Scorpion Capital report.
- Law firms, such as Hagens Berman, Pomerantz LLP, and Holzer & Holzer, LLC, have taken an interest in the business dealings of Soleno Therapeutics, as they launch investigations into the company's practices, particularly regarding VYKAT XR's safety and commercial prospects.
