SLNO Faces Federal Securities Investigation After Critical Report Raises Safety Concerns

Regulatory Scrutiny Mounts on Soleno After Scorpion Report Targets Vykat XR

Soleno Therapeutics (NASDAQ: SLNO) is now the subject of a federal securities law investigation. The action comes after a report from Scorpion Capital sharply criticized Vykat XR, the company's only marketed product, labeling it overpriced and raising potential safety concerns for pediatric use. In the wake of these allegations, investors are left grappling with heightened uncertainty over the company's outlook.

Potential Impact: Ongoing Legal Review Could Shape Investor Confidence

The law firm Bragar Eagel & Squire, P.C.—known for representing investors in complex litigation—has begun examining whether Soleno may have failed to disclose material information or engaged in other unlawful practices. Their investigation could influence how investors perceive regulatory and operational risks surrounding the company, especially given the intense scrutiny of Vykat XR’s commercial trajectory and safety profile.

Recent Events: Share Price Reacts to External Scrutiny

The market has responded swiftly. On August 15, 2025—the day Scorpion’s report was released—SLNO shares closed down by $5.73, a drop of 7.41%, signaling immediate investor concern. As of 11:22 AM today, the stock trades at $52.89, reflecting some stabilization, but the investigation has introduced a new layer of volatility and caution to trading activity.

Key Takeaway: Heightened Risk Calls for Investor Vigilance

For now, Soleno investors face an uncertain road. Regulatory probes can be lengthy and often weigh on sentiment, even if they don’t result in direct penalties. While Vykat XR’s commercial prospects remain a central focus, today’s investigation highlights how legal and reputational risk can become a central theme for biopharma stocks almost overnight. For anyone tracking SLNO, this development warrants close attention to future regulatory updates and any response from the company itself.

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