The zSpace, Inc. class action lawsuit was filed on behalf of those who purchased or otherwise acquired zSpace, Inc. (“zSpace”) (NASDAQ: ZSPC) securities pursuant and/or traceable to the registration statement and related prospectus (collectively, the “Registration Statement”) issued in connection with zSpace’s December 2024 initial public offering (the “IPO”). Captioned Matthew Kovaleski v. zSpace, Inc., No. 26-cv-02432 (E.D.N.Y.), the zSpace class action lawsuit alleges that zSpace and/or certain of its officers and/or directors violated federal securities laws by making false or misleading statements and/or omitted to disclose material information.
If you lost money as a result of your zSpace investment and want to find out more about this action and your rights, fill out the form on this page or contact attorney Jonathan Naji, Esq. of KTMC by calling (484) 270-1453 or via e-mail at info@ktmc.com.
COMPLAINT ALLEGATION SUMMARY:
The complaint alleges that, in the Registration Statement, Defendants made materially false and/or misleading statements, as well as failed to disclose material facts about the company’s business, operations, and prospects. Specifically, Defendants misrepresented and/or failed to disclose that: (1) not all purchasers and/or owners of zSpace preferred stock were disclosed; and (2) as a result of the foregoing, Defendants’ statements about the company’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
WHY DID zSPACE’S STOCK DROP?
On December 6, 2024, zSpace filed its final prospectus for its IPO, in which it sold approximately 1,875,000 common stock shares at $5.00 per share. On March 11, 2026, a lawsuit (the “Kmax lawsuit”) was filed that revealed that there a substantial purchaser of zSpace stock that was not disclosed in the Registration Statement. The Kmax lawsuit concerns the rights of this purchaser, and alleges that zSpace failed to provide them with requested financial statements, among other claims.
The Kmax lawsuit revealed that zSpace knew about yet failed to disclose the purchaser in its Registration Statement, and that zSpace knew or should have known that there was a significant risk of litigation.
On April 21, 2026, zSpace carried out a 1-for-25 reverse stock split. As of April 23, 2026, zSpace’s share price fell to just $0.0208 per share, not accounting for the reverse stock split.
THE LEAD PLAINTIFF PROCESS:
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired zSpace securities during the Class Period to seek appointment as lead plaintiff in the zSpace class action lawsuit. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP:
Kessler Topaz Meltzer & Check, LLP (KTMC) is a leading U.S. plaintiff-side law firm focused on securities-fraud class actions and global investor protection. The firm represents individual investors as well as institutions, such as major pension funds, asset managers, and international investors. KTMC has led some of the largest recoveries in securities litigation and has been recognized by peers and the legal media with numerous accolades, including The National Law Journal’s Plaintiff’s Hot List and Trailblazers in Plaintiffs' Law, BTI Consulting Group’s Honor Roll of Most Feared Law Firms, The Legal Intelligencer’s Class Action Firm of the Year, Lawdragon’s Leading Plaintiff Financial Lawyers, and Law360’s Titans of the Plaintiffs Bar. The firm operates globally with offices in Pennsylvania and California. KTMC has recovered over $25 billion for our clients and the classes they represent.