Zenas BioPharma Sued by Investor Over Halving of IPO Stock Price

Zenas BioPharma Inc. overstated how long it would have cash to operate in its market debut paperwork, leading share prices to fall to about half of the $17 initial public offering price since, to investors’ detriment, a proposed class action said.

The biopharmaceutical company’s September filing said it believed net IPO proceeds plus existing cash would keep it afloat for at least the next 24 months, a shareholder told the US District Court for the District of Massachusetts. But in November, Zenas BioPharma said in a Securities and Exchange Commission filing that it could fund its operations for at least ...