Zenas BioPharma, Inc. (ZBIO) has disclosed a new risk, in the Litigation & Legal Liabilities category.
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Zenas BioPharma, Inc. faces significant business risks due to securities class action litigation, which can arise after fluctuations in their stock prices. In April 2025, a lawsuit was filed against the company and its executives, alleging violations of the Securities Act of 1933 related to their IPO. This litigation demands compensatory damages and legal fees, potentially diverting management’s focus and increasing operational costs. Furthermore, the situation could elevate the cost of liability insurance for directors and officers, impacting the company’s financial health and reliance on its balance sheet for covering legal expenses.
Overall, Wall Street has a Strong Buy consensus rating on ZBIO stock based on 4 Buys and 1 Hold.
To learn more about Zenas BioPharma, Inc.’s risk factors, click here.