Class Action Filed on Behalf of ZoomInfo Technologies Investors
Glancy Prongay & Murray LLP, a law firm focused on shareholder rights, has filed a class action lawsuit on behalf of investors in ZoomInfo Technologies Inc. (NASDAQ: ZI). The case seeks to protect investors who purchased ZoomInfo common stock during a defined time frame and now face losses they believe stem from misleading statements about the company’s business and financial performance.
Class Period and Key Deadline
The class covers investors who bought shares between November 10, 2020, and August 5, 2024. If you fall within this period, you have until November 4, 2024, to file a motion asking the court to appoint you as lead plaintiff. That step can position you to help guide the litigation and, if successful, pursue recovery tied to the alleged misstatements.
What Triggered Investor Concern
On August 5, 2024, ZoomInfo reported second-quarter 2024 results that missed revenue and earnings expectations by a notable margin. The company also cut its full-year outlook for several key measures—revenue, adjusted operating income, and free cash flow—signaling a weaker trajectory than previously communicated. Adding to the pressure, ZoomInfo recorded an unexpected $33 million charge tied to customer non-payments, raising questions about the quality and collectability of certain accounts.
Market Reaction
Following these developments, ZoomInfo’s stock fell sharply. On August 6, 2024, shares declined $1.79, or 10.3%, to close at $8.01. For many investors, that single-day drop underscored the urgency of understanding their rights and the potential remedies offered by the pending lawsuit.
What the Complaint Alleges
The complaint asserts that the defendants made false and/or misleading statements about ZoomInfo’s operations and financial health. Among the allegations:
- ZoomInfo’s growth and financial performance were temporarily boosted by COVID-19 trends in a way that misled investors about the durability of that growth.
- A material portion of customers were, according to the complaint, seeking to scale back or end their relationships with the company.
- The company allegedly used coercive tactics to keep customers from leaving.
- There were concerns about financial reporting, including accounts receivable that were at heightened risk of non-payment.
Taken together, these points suggest the company may not have provided a full and fair picture of its prospects, potentially exposing investors to risks that were not clearly disclosed.
Your Rights and Next Steps
If you bought ZoomInfo stock during the class period, you have rights in this case. You can choose to seek your own legal representation or take no immediate action and remain a member of the putative class at this stage. Choosing not to act now does not remove you from the class.
For questions about participation, eligibility, or timing, Glancy Prongay & Murray LLP can provide additional information. You can contact the firm directly using the details included in the original announcement.
Frequently Asked Questions
What is this lawsuit trying to achieve?
It seeks to recover losses for investors who say they were harmed by alleged misleading statements and omissions about ZoomInfo’s business and financial performance.
Who is included in the class period?
Investors who purchased ZoomInfo common stock between November 10, 2020, and August 5, 2024, are within the proposed class.
What is the deadline to seek lead plaintiff status?
The deadline to file a motion to be appointed lead plaintiff is November 4, 2024.
What events sparked the lawsuit?
ZoomInfo’s August 5, 2024 disclosure of weaker-than-expected Q2 results, lowered full-year guidance, and a $33 million charge for customer non-payments heightened concerns about prior statements.
How did the market react to the August disclosures?
On August 6, 2024, ZoomInfo’s stock dropped $1.79, or 10.3%, closing at $8.01, reflecting the market’s negative response.
