zSpace ($ZSPC) Undisclosed Preferred Shareholder and Litigation Risk Case

Investors can submit applications for the lead plaintiff role.

E.D. New York

Court

1:26-cv-02432

Case number

12/06/2024

Class period Start

04/23/2026

Class period End

06/22/2026

Lead Plaintiff motion deadline

$ZSPC investors filed a claim against zSpace for allegedly failing to disclose a major preferred shareholder and a real litigation risk tied to preferred stock purchases.
After the Kmax lawsuit revealed the alleged omitted shareholder dispute, $ZSPC had fallen 99.6% from its $5.00 IPO price, trading as low as $0.0208 per share.
$ZSPC investors can join this case to be notified about potential recovery.
Case Details:

Between June 24, 2024 and December 6, 2024, zSpace told investors it was a leading provider of augmented reality and virtual reality education technology. Its IPO materials identified principal stockholders and warned that legal disputes could arise from time to time.

However, during this period, investors allege zSpace had already received questions from Jiangxi Kmax Industrial about financial statements allegedly owed under preferred stock purchase agreements. zSpace allegedly failed to disclose Kmax had purchased Series E and Series F preferred stock, Kmax was not named in the IPO materials despite the company’s stockholder disclosures; and litigation risk from the Kmax dispute was allegedly real, not merely hypothetical.

Then, on March 11, 2026, Kmax filed a lawsuit claiming it had purchased more than 13 million preferred shares and that zSpace later showed Kmax owned only 4,569 common shares.

Additional revelations followed on April 21, 2026, including a 1-for-25 reverse stock split. 

By April 23, 2026, shares had traded as low as $0.0208, representing a total decline of 99.6% from the $5.00 IPO price.

Based on these events, $ZSPC investors filed a claim against zSpace, alleging the company:
It omitted a major preferred shareholder from its IPO materials.
It described litigation risk as hypothetical even though investors allege a shareholder dispute already existed.
It caused investors to buy IPO shares without key information about ownership and legal exposure.
Investors argue zSpace misled the market about its stockholder disclosures and litigation risk, causing losses when the truth emerged. 

Case Type

US Securities Class Action

Case Status

Lead Plaintiff Submission

Alleged Offence

Misleading Statements,

Failure to Disclose,

Negligence,

Omissions

Suspected Party

Directors,

Management,

Investment Bank

Security Type

Stocks

Trade Direction

Long

Shock Event Date

03/11/2026

Filing date

04/23/2026

Lead Plaintiff Deadline

06/22/2026

Trusted by industry leaders

Endorsed by top professionals who trust our innovative solutions to drive impactful results.