Zenas BioPharma ($ZBIO) IPO Misstatements and Liquidity Risk Disclosure Case

D. Massachusetts

Court

1:25-cv-10988

Case number

09/13/2024

Class period Start

04/17/2025

Class period End

06/16/2025

Lead Plaintiff motion deadline

$ZBIO investors filed a claim against Zenas BioPharma for overstating its financial runway and failing to disclose capital needs just weeks after its IPO.
After admitting it could only fund operations for 12 months, not 24 as stated in the IPO filing, $ZBIO dropped nearly 49%.
$ZBIO investors can join this case to be notified about potential recovery.
Case Details:

On September 13, 2024, Zenas BioPharma completed its IPO, offering over 13.2 million shares at $17.00 per share. The company’s prospectus told investors it had sufficient capital from the offering and existing cash to fund operations for at least 24 months.

However, just two months later, in its November 12, 2024 quarterly filing, Zenas revealed that it only had enough cash to operate for the next 12 months and would need to raise additional capital sooner than expected. The company also acknowledged it might be unable to secure that funding on favorable terms or at all. This statement directly contradicted the financial outlook provided in the IPO registration.

By April 15, 2025, $ZBIO had fallen 48.7% from its IPO price.

Based on these events, $ZBIO investors filed a claim against Zenas BioPharma, accusing the company of the following:
It overstated their financial runway and misled investors about their need to raise additional capital.
It failed to disclose known risks and uncertainties that impacted their operations immediately after the IPO.
Considering all the representations, investors believe Zenas issued a misleading registration statement that hid short-term liquidity challenges to support a successful offering.

Case Status

Lead Plaintiff Appointment

Alleged Offence

Misleading Statements,

Financial Misrepresentation,

Omissions

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Shock Event Date

11/12/2024

Filing date

04/16/2025

Lead Plaintiff Deadline

06/16/2025

Zenas BioPharma, Inc.

Zenas BioPharma, Inc., a clinical-stage biopharmaceutical company, engages in the development and commercialization of transformative immunology-based therapies. Its lead product candidate is obexe...

Ticker

ZBIO.US

ISIN

US98937L1052

Sector

Healthcare

Industry

Biotechnology

Country

USA

Address

852 Winter Street, Waltham, MA, United States, 02451