Robbins LLP Calls Attention to Class Action Against Zenas BioPharma, Inc. Investors

Robbins LLP Issues Shareholder Alert for Zenas BioPharma, Inc.

Robbins LLP has issued a reminder for shareholders regarding a class action lawsuit for those who have acquired Zenas BioPharma, Inc. (NASDAQ: ZBIO) securities related to its September 2024 initial public offering (IPO). The firm seeks to represent individuals who purchased shares as part of the registration statement and the accompanying prospectus.

Background on Zenas BioPharma

Zenas BioPharma positions itself as a global biopharmaceutical firm focused on the development and commercialization of innovative immunology-based therapies. However, recent allegations suggest that Zenas BioPharma may have misled investors during its IPO process, significantly impacting share value.

Allegations Against Zenas BioPharma

According to the filed complaint, Zenas BioPharma allegedly overrepresented its financial stability related to funding operations. It was reported that, subsequent to the IPO, the company could only sustain operations for a year using existing cash and expected proceeds, as opposed to the previously stated two years during the IPO. This discrepancy was formally disclosed in the quarterly report submitted to the SEC on November 12, 2024. Following this revelation, Zenas BioPharma's share price experienced a sharp decline—reportedly decreased to $8.72, marking a 48.7% drop from its IPO price.

Next Steps for Affected Investors

Shareholders who believe they may qualify to take part in the class action must file their papers by June 16, 2025. This initiative is crucial since the lead plaintiff represents the interests of all class members throughout the litigation process. Importantly, individuals are not required to actively participate in the lawsuit to secure compensation; they may choose to remain as absent class members.

Legal Representation Details

Robbins LLP operates on a contingency fee basis, which means that shareholders will incur no financial costs unless a recovery is achieved. This approach aims to broaden access to legal representation for those facing financial losses.

About Robbins LLP

Founded in 2002, Robbins LLP has established itself as a leader in shareholder rights litigation. The firm is dedicated to advocating for shareholders' interests, assisting them in reclaiming losses, enhancing corporate governance, and holding company executives accountable for misconduct.

For shareholders eager to stay informed about any class action settlements against Zenas BioPharma, sign up for the firm’s Stock Watch service. This service will provide updates and alerts about shareholder rights and litigations involving corporate wrongdoing.

In summary, Scott’s plea highlights the importance of vigilance in the investing landscape. Misrepresentation in the IPO can have far-reaching consequences for both the investors and the overall market. Therefore, if you have incurred losses in the investments you made in Zenas BioPharma following its IPO, consider taking the necessary steps to potentially recover your losses through this class action lawsuit.