#United States #San Diego #Class Action #SEC violations #Zenas BioPharma

Zenas BioPharma Investors: Important Class Action Alert

On June 2, 2025, Robbins Geller Rudman & Dowd LLP announced a significant opportunity for investors who acquired shares of Zenas BioPharma, Inc. (NASDAQ: ZBIO) during its Initial Public Offering (IPO) on September 13, 2024. Those who suffered substantial financial losses now have until June 16, 2025, to seek the position of lead plaintiff in a class action lawsuit against the company. The lawsuit, captioned Buathongsri v. Zenas BioPharma, Inc., accuses Zenas BioPharma and certain top executives of the company of significant violations under the Securities Act of 1933, arising from the IPO process.

Background of the Case

Zenas BioPharma is a clinical-stage biopharmaceutical company that focuses on developing innovative therapies for immunology-based disorders. During its IPO, Zenas BioPharma sold over 13 million shares at a price of $17.00 each. However, the lawsuit contends that numerous statements made in connection with the IPO were materially false or misleading. Most notably, the offering documents allegedly overstated the duration for which the company could fund its operations using existing capital and anticipated net proceeds from the IPO.

On November 12, 2024, a quarterly report from Zenas BioPharma revealed disconcerting information: the company could only sustain its operations for 12 months, contradicted the earlier statements which suggested a funding timeline of 24 months. As a result, Zenas BioPharma's stock price plummeted to $8.72 by April 15, 2025, representing a staggering 48.7% decline from the IPO price.

Seeking Lead Plaintiffs

Under the Private Securities Litigation Reform Act of 1995, investors affected by the alleged misrepresentations by Zenas BioPharma can apply to be lead plaintiffs in the class action lawsuit. The lead plaintiff is typically the individual who has the most financial stake in the case and represents the interests of all class members. This designation enables the lead plaintiff to select preferred legal counsel to advocate for the class's best interests in court.

For potential investors wishing to take on this role, it is essential to initiate the process promptly by providing necessary information via the link provided by Robbins Geller. Moreover, participation as a lead plaintiff does not restrict an investor's eligibility to share in any financial recoveries that may occur from the lawsuit proceedings.

About Robbins Geller

Robbins Geller Rudman & Dowd LLP is renowned for its dedication to representing investors in cases concerning securities fraud and shareholder litigation. The firm has consistently ranked first in securities class action recovery, having achieved more than $2.5 billion for investors in 2024 alone. With a foundation established on favorable outcomes in previous cases, Robbins Geller stands as a formidable advocate for aggrieved investors, showcasing a commitment to justice against corporate misconduct.

If you believe you qualify to take part in the Zenas BioPharma class action lawsuit, timely action is important. For further details or to express interest in becoming a lead plaintiff, visit Robbins Geller's official site.

Remember, past results do not ensure future success in litigation, and it is crucial to stay informed and proactive regarding your rights as an investor.