Investors of Zenas BioPharma Can Join Class Action Lawsuit After Substantial Losses
On June 12, 2025, the legal firm Robbins Geller Rudman & Dowd LLP announced important news for investors of Zenas BioPharma, Inc. (NASDAQ: ZBIO) who experienced considerable financial setbacks following the company's IPO. Investors now have the opportunity to become the lead plaintiff in a securities class action lawsuit against Zenas BioPharma. This follows a report that outlines the consequences of the company’s recent public offering held on September 13, 2024.
The class action is titled Buathongsri v. Zenas BioPharma, Inc., filed in the District of Massachusetts. The allegations include violations of the Securities Act of 1933, asserting that Zenas BioPharma and its executives provided misleading documentation during the IPO concerning the company’s financial expectations and operational funding.
According to the complaint, Zenas BioPharma initially sold over 13 million shares at a price of $17.00 each. However, the lawsuit indicates that vital information about the sustainability of the company’s funding was not accurately disclosed. While executives had claimed that the company could fund its operations for 24 months based on the funds raised, a follow-up report released on November 12, 2024, disclosed grave discrepancies, cutting the estimated funding duration to just 12 months.
By April 15, 2025, Zenas BioPharma’s stock fell dramatically to $8.72, representing a staggering 48.7% drop from the initial IPO pricing, highlighting the dissonance between the company's optimistic financial projections and actual performance.
Any individual who acquired Zenas BioPharma securities linked to this IPO is eligible to apply as the lead plaintiff in this class action lawsuit. A lead plaintiff generally is an investor with the most significant financial stake who also shares similar circumstances with the broader class of affected investors. The lead plaintiff would guide the legal proceedings and can select a legal firm to represent them. Importantly, potential compensation for any settlements does not depend on acting as the lead plaintiff.
Robbins Geller Rudman & Dowd LLP has a noteworthy track record in securities-related lawsuits, securing over $2.5 billion in monetary relief for clients in 2024 alone, which surpasses the earnings of the next five law firms combined. This firm, which boasts more than 200 attorneys spread across 10 offices, has consistently ranked among the top legal advocates for investors and has represented cases achieving historic recoveries, including a monumental $7.2 billion settlement in the Enron Corporation securities litigation.
For those affected, the deadline to express interest in being appointed as lead plaintiff is June 16, 2025. Investors can fill out required information through the online platform or directly contact attorneys associated with Robbins Geller for further assistance. The firm continues to set high standards in the realm of securities litigation, driving outcomes that serve justice for investors who have faced losses due to alleged securities fraud. More details regarding the process and firm history can be found on their official webpage.