Act Now or Risk Everything: Zenas BioPharma Investors Face a Critical Deadline to Secure Recovery

The biotechnology sector has long been a high-stakes arena for investors, but few cases exemplify the fragility of trust—and the necessity of legal vigilance—more than the ongoing securities class action lawsuit against Zenas BioPharma, Inc. (NASDAQ: ZBIO). With a June 16, 2025 deadline looming for investors to seek lead plaintiff status, the stakes are clear: delay could mean permanent loss of rights to recover.

At its core, this case hinges on allegations that Zenas BioPharma materially misrepresented its financial sustainability in its September 2024 IPO. By overstating its cash runway by 50%, the company allegedly inflated investor confidence—and its stock price—to unsustainable levels. Now, with shares plummeting and accountability on the line, investors must act decisively to protect their interests.

The Core Allegations: A Broken Promise to Investors

The lawsuit, Buathongsri v. Zenas BioPharma, Inc., accuses the company of violating the Securities Act of 1933 by making false or misleading statements in its IPO registration statement. Specifically, Zenas claimed it could fund operations for 24 months using existing cash and IPO proceeds—a timeline later revealed to be grossly inflated.

By November 2024, the truth surfaced: Zenas' actual cash runway was only 12 months, half the duration stated in its IPO documents. The fallout was swift. By April 15, 2025, shares had plunged 48.7% to $8.72—nearly half the IPO price of $17.00.

This misrepresentation wasn't just a technicality. It was a flagrant breach of trust, designed to lure investors into a precarious financial position. As one plaintiff attorney noted, “When a company lies about its ability to survive, it's not just about numbers—it's about whether investors can ever believe anything they read in an IPO prospectus.”

The June 16 Deadline: Your Last Chance to Act

The lead plaintiff deadline is non-negotiable. By June 16, 2025, investors who purchased ZBIO shares during or traceable to the IPO must file motions to seek lead plaintiff status. This role is critical: the lead plaintiff selects the law firm to represent the class and ensures the case is prosecuted effectively.

Why this matters:
1. Financial Impact: Lead plaintiffs with the largest losses are prioritized, so delay could mean losing eligibility.
2. Class Certification: Without a strong lead plaintiff, the case risks stagnation or dismissal.
3. Recovery Potential: A robust legal team can maximize settlement value—if you're not part of the class, you gain nothing.

Class Actions as a Shield for Investors

Class actions are the last line of defense for small and mid-sized investors. Here's why this case matters:
- Accountability Over Silence: Zenas' alleged misstatements exemplify a broader issue in biotech IPOs: overhyped projections to juice short-term gains.
- Contingency Fees: Investors pay nothing upfront. Lawyers work on a “no win, no fee” basis, so there's no risk to act.
- Precedent Value: A victory here could set a standard for transparency in IPO disclosures, deterring future fraud.

The Risks of Inaction: What's at Stake?

• Lost Rights: Missing the deadline forfeits your ability to participate in any recovery.
• Erosion of Trust: If companies face no consequences for fraud, the IPO market's integrity weakens.
• Financial Ruin: For investors who poured savings into ZBIO, a 48.7% loss is devastating—recovery is their only path to solvency.

Your Next Steps: Act Immediately

1. Verify Eligibility: Did you purchase ZBIO shares between September 13, 2024 (IPO date) and November 12, 2024? If yes, you're likely eligible.
2. Choose a Lawyer: Engage a firm with proven results in securities litigation:
3. Robbins Geller Rudman & Dowd LLP: $2.5B+ recovered in 2024; led the historic $7.2B Enron settlement.
4. Rosen Law Firm: Specializes in IPO fraud, with a $1B+ track record.
5. Levi & Korsinsky, LLP: Seven straight years in ISS's Top 50.
6. File by June 16: Contact your chosen firm today. Links and details:
7. Robbins Geller: | 800-449-4900
8. Rosen Law: | 866-767-3653

Final Warning: Time is Ticking

The clock is running. If you've suffered losses in ZBIO, do not assume someone else will act. The law rewards the proactive—not the passive.

This isn't just about money. It's about ensuring companies like Zenas BioPharma face consequences when they gamble with investor trust. The June 16 deadline is your only chance to reclaim what was stolen.

Act now—or risk everything.

This article is for informational purposes only. Investors should consult legal counsel before taking action.