Shareholder Class Action Filed Against zSpace, Inc.

Written by Emily J. Thompson, Senior Investment Analyst

Source: Globenewswire

Updated: 3 days ago

0mins

ZSPC-28.75%

Should l Buy ZSPC?

Source: Globenewswire

Lawsuit Background: zSpace, Inc. (NASDAQ: ZSPC) is facing a shareholder class action lawsuit for issuing false and misleading statements during its Initial Public Offering (IPO), including allegations of failing to disclose financial obligations to shareholders.
Key Allegations: The lawsuit claims that before filing the S-1 form, a purchaser of preferred stock emailed executive DeOliveira requesting financial statements, indicating the company's failure to meet obligations to preferred shareholders.
Undisclosed Shareholder: The lawsuit also highlights that a purchaser of preferred shares was not named in the Registration Statement, which could undermine investor trust in the company's transparency and negatively impact its market performance.
Legal Consequences: Investors who purchased zSpace shares during the December 2024 IPO and suffered losses are encouraged to apply to be lead plaintiffs by June 22, 2026, indicating that this case could have significant implications for the company's future legal and financial standing.

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Analyst Views on ZSPC

Wall Street analysts forecast ZSPC stock price to rise

3 Analyst Rating

2 Buy

1 Hold

0 Sell

Moderate Buy

Current: 0.442

Low

0.90

Averages

2.30

High

3.00

Current: 0.442

Low

0.90

Averages

2.30

High

3.00

Barrington

Outperform

maintain

2026-03-31

Reason

Barrington

Price Target

AI Analysis

2026-03-31

maintain

Outperform

Reason

Barrington lowered the firm's price target on zSpace to 50c from $3 and keeps an Outperform rating on the shares following last night's Q4 report. zSpace's revenue and adjusted EBITDA loss were below expectations due to continued uncertainty in its end markets, education funding concerns and the government shutdown, the analyst tells investors in a research note. The firm believes that as federal education policy and funding become more predictable, zSpace will be well positioned to drive value for shareholders.

Roth Capital

Buy

downgrade

2026-03-31

Reason

Roth Capital

Price Target

2026-03-31

downgrade

Buy

Reason

Roth Capital lowered the firm's price target on zSpace to 50c from $3 and keeps a Buy rating on the shares. The company had an extremely challenging 2025 as it faced tariff-related supply chain pressures and an extended government shutdown that weighed on K-12 funding, though 2026 year-to-date developments present a more balanced outlook, the analyst tells investors in a research note. Funding actions, new customer wins, and 30%-plus cost reduction suggest management is taking steps to stabilize the business and extend runway, the firm added.

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About ZSPC

zSpace, Inc. is a provider of augmented reality (AR) and virtual reality (VR) educational technology solutions. It is focused on both United States K-12 schools and Career & Technical Education (CTE) markets. Its proprietary hardware and software platform provides the ability to deliver an interactive, stereoscopic three-dimensional (3D) learning experience to its users without the need to utilize VR goggles or specialty glasses. Its platform serves a range of critical educational tools designed for K-12 science, technology, engineering and math (STEM) lessons, and training skilled trades in areas, such as health sciences, automotive engineering/repair, Unity3D software programming and advanced manufacturing. Its hardware is the enabler of the 3D learning experience on its platform. It develops and delivers both platform management software, enabling the easy distribution, licensing and management of Web-enabled applications, and end user applications that students use on its devices.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.

Class Action Filed Against zSpace for Securities Violations

3 hours agoGlobenewswire

Class Action Initiated: Bronstein, Gewirtz & Grossman, LLC has announced a class action lawsuit against zSpace, Inc. aimed at recovering damages for investors who purchased securities during the December 4, 2024 IPO, highlighting serious concerns regarding the company's compliance with federal securities laws.
Allegations of Misrepresentation: The complaint alleges that zSpace's registration statement contained false and misleading statements, failing to disclose financial obligations to preferred shareholders, which could expose investors to legal risks and negatively impact the company's reputation and stock price.
Investor Action Deadline: Affected investors must apply to be lead plaintiffs by June 22, 2026, indicating that the legal challenges faced by the company could affect its future financing capabilities and market trust.
Legal Fee Structure: Bronstein, Gewirtz & Grossman, LLC operates on a contingency fee basis, meaning they will only charge fees if they successfully recover funds, which may encourage more investors to participate in the lawsuit to protect their rights.