StockNews.AI
ZBIO
StockNews.AI
120 days

Zenas Biopharma Investors Urged to Contact Cohen Milstein After Post-IPO Losses

1. Cohen Milstein is investigating claims for ZBIO's 2024 IPO investors. 2. ZBIO's IPO raised $224.4 million, priced at $17 per share. 3. Allegations claim misleading statements about financial sustainability. 4. ZBIO revised operational funding estimate from 24 months to 12 months. 5. Stock dropped 48.7% post-announcement, closing at $8.72 per share.

4m saved
Insight
Article

FAQ

Why Very Bearish?

The significant drop in stock price following revised funding estimates indicates severe market distrust, reminiscent of historical examples such as Theranos, where investor confidence plummeted after reality checks on financial sustainability.

How important is it?

The article discusses significant legal challenges post-IPO with potential for extensive financial loss, making it highly relevant.

Why Short Term?

Immediate investor reaction is likely as class action details emerge, similar to past situations where legal challenges quickly affected stock performance.

Related Companies

ZBIOIPONASDAQ
WASHINGTON, April 21, 2025 (GLOBE NEWSWIRE) -- Cohen Milstein Sellers & Toll PLLC is investigating potential claims on behalf of investors who purchased securities of Zenas BioPharma, Inc. (NASDAQ: ZBIO) pursuant and/or traceable to the Company’s September 2024 initial public offering (“IPO”). Investors who suffered significant losses are encouraged to contact the firm. [Click here for information about joining the class action] CASE OVERVIEW: Zenas BioPharma, a clinical-stage biopharmaceutical company, held its IPO on or around September 13, 2024, selling approximately 13.2 million shares at $17.00 per share. A recently filed class action complaint alleges that the Zenas BioPharma, key executives, directors, and IPO underwriters made materially false and misleading statements in the Registration Statement by overstating the duration the company could sustain operations with its IPO proceeds and existing cash reserves. In its third quarter 2024 report, Zenas BioPharma revised its estimate, stating it could fund operations for only 12 months, rather than the previously disclosed 24 months. Following this announcement, the company’s stock declined sharply—closing at $8.72 per share on April 15, 2025—representing a 48.7% drop from the IPO price. INVESTOR OPTIONS: Investors who purchased Zenas BioPharma securities in the IPO and experienced financial losses have until June 16, 2025, to seek appointment as lead plaintiff. You do not need to seek appointment as lead plaintiff to be eligible to share in any potential recovery. To learn more about this matter or discuss your rights, please contact Cohen Milstein partner Molly J. Bowen at (202) 408-4600 or mbowen@cohenmilstein.com. ABOUT COHEN MILSTEIN: With over 100 attorneys across eight offices, Cohen Milstein is one of the nation’s premier plaintiffs’ law firms, known for securing significant recoveries in complex securities fraud cases. The firm recently recovered over $1 billion for investors as co-lead counsel in In re Wells Fargo & Company Securities Litigation. Recognized by The National Law Journal, Law360, Chambers USA, and The Legal 500, Cohen Milstein continues to set the standard for investor advocacy. Visit www.cohenmilstein.com to learn more. Attorney Advertising. Prior results do not guarantee a similar outcome. CONTACT:Molly Bowen, Esq.Licensed in DC, Florida, and OhioCohen Milstein Sellers & Toll PLLC1100 New York Avenue, N.W., Fifth FloorWashington, D.C. 20005Phone: (888) 240-0775 or (202) 408-4600Email: mbowen@cohenmilstein.comWebsite: www.cohenmilstein.com

Related News