Faruqi & Faruqi LLP Issues Urgent Reminder to Soleno Therapeutics Investors

NEW YORK, March 2026 — Prominent national securities law firm Faruqi & Faruqi LLP has issued a critical reminder to investors of Soleno Therapeutics, Inc. (NASDAQ: SLNO) regarding the fast-approaching deadline to participate as a lead plaintiff in a pending securities class action lawsuit. The deadline, set for May 5, 2026, represents a pivotal moment for shareholders who experienced financial losses during the relevant class period.

Overview of the Securities Class Action

The lawsuit centers on allegations that Soleno Therapeutics and certain of its executives made materially false and misleading statements to investors. These alleged misrepresentations pertain to the company's business operations, regulatory prospects, and financial outlook, ultimately impacting investor confidence and stock performance.

According to the complaint, investors who purchased or otherwise acquired Soleno securities during the class period may have suffered significant financial losses due to the company’s failure to disclose critical information in a timely and transparent manner.

Who Is Eligible to Participate?

Investors who acquired SLNO securities during the specified class period are encouraged to evaluate their eligibility. Participation in the lawsuit does not require investors to take immediate action unless they wish to be appointed as a lead plaintiff, a role that involves representing the interests of other affected shareholders.

Criteria for Lead Plaintiff Status

To qualify as a lead plaintiff, an investor must:

• Have purchased Soleno Therapeutics securities during the class period
• Demonstrate the largest financial interest among class members
• Be willing to actively participate in the litigation process

Importantly, investors who do not seek lead plaintiff status can still remain part of the class and may benefit from any potential settlement or recovery.

Key Allegations Against Soleno Therapeutics

The lawsuit alleges that Soleno Therapeutics engaged in actions that misled investors about the viability and regulatory standing of its lead drug candidate. These alleged actions include:

1. Misrepresentation of Clinical Data

The company is accused of overstating the effectiveness and safety profile of its clinical-stage drug, leading investors to believe that regulatory approval was more likely than it actually was.

2. Failure to Disclose Regulatory Risks

Soleno allegedly failed to adequately inform investors about significant risks associated with regulatory approval processes, including potential setbacks or rejections by governing health authorities.

3. Inflated Financial Outlook

The complaint claims that the company presented an overly optimistic financial forecast, which did not align with internal data or realistic projections.

Impact on Investors

Following the disclosure of adverse information, Soleno Therapeutics’ stock price reportedly experienced a sharp decline. This drop resulted in substantial losses for shareholders who had relied on the company’s earlier statements.

Market analysts have pointed to this case as a textbook example of how insufficient corporate transparency can lead to investor harm and legal consequences.

Role of Faruqi & Faruqi LLP

Faruqi & Faruqi LLP is a nationally recognized law firm specializing in securities litigation. The firm has a strong track record of representing investors in complex class action lawsuits and has recovered hundreds of millions of dollars on behalf of clients.

The firm is currently investigating claims on behalf of Soleno investors and is encouraging affected individuals to come forward before the May 5, 2026 deadline.

Why Choose Experienced Legal Representation?

Engaging a reputable law firm can significantly impact the outcome of a securities case. Experienced attorneys bring:

• Deep knowledge of securities law
• Proven litigation strategies
• Resources to challenge large corporations

Understanding Securities Class Actions

Securities class actions are legal proceedings in which a group of investors collectively bring a claim against a company for alleged violations of securities laws. These cases often involve:

• Misleading financial disclosures
• Fraudulent business practices
• Insider trading allegations

The goal is to recover losses for investors and promote accountability within publicly traded companies.

Steps Investors Should Take Now

Investors who believe they have been affected should consider taking the following steps:

1. Review Investment Records

Gather documentation of all transactions involving Soleno Therapeutics securities during the class period.

2. Assess Financial Losses

Determine the extent of losses incurred as a result of the alleged misconduct.

3. Consult Legal Counsel

Seek advice from a qualified securities attorney to understand your rights and options.

4. Act Before the Deadline

Ensure that any motion for lead plaintiff status is filed before May 5, 2026.

Importance of the May 5, 2026 Deadline

The deadline is crucial for investors who wish to play a more active role in the litigation. Missing this date does not necessarily exclude investors from the class, but it does eliminate the opportunity to serve as lead plaintiff.

Legal experts emphasize that early participation can provide greater influence over the direction of the case and potential settlement negotiations.

Potential Outcomes of the Lawsuit

While the outcome of the case remains uncertain, possible scenarios include:

• Financial settlement compensating affected investors
• Corporate governance reforms within Soleno Therapeutics
• Dismissal of claims if insufficient evidence is presented

Historically, many securities class actions result in settlements, though the amount and terms vary widely.

Broader Implications for the Biotech Industry

This case highlights ongoing challenges within the biotechnology sector, where companies often face intense pressure to deliver positive clinical results and secure regulatory approvals.

Transparency and accurate disclosure are critical in maintaining investor trust, especially in industries driven by innovation and uncertainty.

Investor Protection and Market Integrity

Securities laws are designed to protect investors and ensure fair and efficient markets. Cases like this reinforce the importance of holding companies accountable for their disclosures and business practices.

Regulatory bodies and legal institutions play a vital role in maintaining market integrity and preventing future misconduct.

Frequently Asked Questions (FAQs)

1. What is a securities class action?

A securities class action is a lawsuit filed by investors against a company for alleged violations of securities laws, often involving misleading statements or omissions.

2. Do I need to pay upfront legal fees?

No. Most securities class actions are handled on a contingency basis, meaning attorneys are paid only if the case is successful.

3. Can I still participate if I miss the deadline?

Yes, you may still be part of the class, but you will not be eligible to serve as lead plaintiff.

4. How long do these cases typically take?

Securities class actions can take several months to several years, depending on the complexity of the case.

5. What compensation can I expect?

Compensation varies based on the outcome of the case and the extent of individual losses.

6. How do I join the lawsuit?

You can contact a securities litigation firm like Faruqi & Faruqi LLP to evaluate your eligibility and guide you through the process.

Conclusion

The reminder issued by Faruqi & Faruqi LLP underscores the importance of timely action for investors affected by alleged securities violations involving Soleno Therapeutics. With the May 5, 2026 deadline rapidly approaching, shareholders are encouraged to assess their positions and seek legal guidance if necessary.

This case serves as a powerful reminder of the need for transparency, accountability, and investor vigilance in today’s financial markets. By taking informed action, investors can protect their rights and contribute to a more trustworthy investment environment.

For more information on securities class actions, visit the official U.S. Securities and Exchange Commission website: https://www.sec.gov

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