![Zenas Biopharma, Inc. (ZBIO) Securities Class Action Lawsuit Update [May 17, 2025]](https://dropinblog.net/cdn-cgi/image/fit=scale-down,format=auto,width=700/34260815/files/featured/zbio.jpeg)
Introduction to Zenas Biopharma Inc, (ZBIO) Lawsuit
This is a shareholder alert about the Zenas Biopharma Inc. (ZBIO) class action lawsuit filed on or about April 16, 2025. The class action lawsuit charges Zenas BioPharma with violations of the Securities Act of 1933. The lawsuit seeks to recover losses of shareholders adversely affected by alleged securities fraud. Investors can seek compensation without paying out of pocket fees or costs through a contingency fee arrangement. Investors have until June 16, 2025 to file submissions for lead plaintiff in the lawsuit.
Zenas Biopharma is a clinical stage biopharmaceutical company investigating transformative immunology-based therapies for autoimmune diseases. It underwent an IPO in September 2024.
In its Registration Statement issued in connection with the IPO, Zenas represented to investors that, with its existing cash on hand plus expected net proceeds from the IPO, Zenas would have enough cash on hand to fund operations for at least two years. The Company shocked investors when, in November 2024, it quickly revised its story and said it only had enough cash on hand for a year and quickly needed to raise more money.
Since that disclosure, Zenas’ stock price has plummeted 48.7% below its IPO price.
Zenas Biopharma Lawsuit Case Details
Buathongsri v. Zenas Biopharma, Inc., et al
Case No. 1:25-cv-10988
U.S. District Court, District of Massachusetts
Filed on April 16, 2025
Zenas Biopharma Company Profile
Zenas Biopharma “is a clinical-stage global biopharmaceutical company committed to being a leader in the development and commercialization of transformative therapies for patients with autoimmune diseases,” according to its website. Its investigational drug, obexelimab, has not yet received FDA clearance for any condition. Zenas underwent an initial public offering (“IPO”) in 2024.
Zenas Biopharma Securities Lawsuit Class Period
This class action lawsuit concerns Zenas Biopharma’s IPO. Investors who purchased Zenas Biopharma securities in connection with Zenas Biopharma's IPO on or around September 13, 2024 might be eligible to join as class members in this securities class action lawsuit.
Zenas Biopharma Inc, Lawsuit Allegations
On September 13, 2024, Zenas Biopharma filed with the SEC its final prospectus for its IPO, which forms part of Zenas Biopharma's Registration Statement. In its IPO, Zenas Biopharma sold about 13.2 million shares at $17 per share.
In the Registration Statement issued in connection with the IPO, the Company Stated, in Part, that it had $183.9 million cash. It expected that its existing cash, plus the IPO expected net proceeds, to fund its operating expenses (“OpEx”) and capital expenses (“CapEx”) for the next two years.
The complaint filed against Zenas alleges the Registration Statement and related Prospectus were negligently prepared, contains materially false and untrue statements of material facts, and was misleading or deceptive to investors. Plaintiffs allege Zenas and certain of Zenas Biopharma's top executives violated federal securities laws such as the Securities Act by failing to disclose known trends, events or uncertainties that were having, or were reasonably certain to have, a negative effect on Zenas’ continuing operations. Plaintiffs allege Zenas Biopharma materially overstated its cash position while downplaying known risks to its cash position.
The Truth Emerges
On November 12, 2024, Zenas filed its 3Q-24 quarterly report. On that report it said it had $386.8 million cash on hand, which was enough to fund its OpEx and CapEx for the next twelve months – a substantial change from its projections just a few months prior. It further disclosed “[t]he Company will need additional financing to support its continuing operations and to pursue its growth strategy.”
Market Reaction
Investors reacted negatively to this news. Since its IPO, Zenas Biopharma's stock price has dropped 48.7% below its IPO price.
Next Steps
Submissions for lead plaintiff are due June 16, 2025.
The Court will issue its order for lead plaintiff and counsel in the weeks after submissions are due.
The Court will then consider motion for class certification.
The Court will later consider a Motion to Dismiss.
To learn if you are eligible for recovery under the Zenas Biopharma shareholder class action, visit the case submission page here.
