ZoomInfo Technologies Faces Class Action Lawsuit Over Losses

Author: Caleb Price Updated: 09-20-2024 09:14 AM

Overview of the Class Action Against ZoomInfo Technologies Inc.

Kaplan Fox & Kilsheimer LLP has announced a significant development for investors involved with ZoomInfo Technologies Inc. This class action lawsuit is set against the backdrop of the company's recent financial missteps, raising substantial concerns among stakeholders.

Details of the Allegations

The class action pertains to securities sold by ZoomInfo between November 10, 2020, and August 5, 2024; a timeframe that marks a volatile period for the company. Investors are invited to join the legal proceedings as investigators uncover potentially misleading financial disclosures.

Significant Financial Reporting Issues

On August 5, 2024, the company reported disappointing financial results after market hours, igniting a wave of scrutiny. They fell short of revenue and earnings expectations and revised estimates regarding revenue collection, leading to a staggering $33 million charge. A significant portion of this charge raised alarms about the credibility of revenue recognition practices at ZoomInfo.

Impact on Shareholder Value

This alarming news caused ZoomInfo's stock to plummet by over 18%. Shares that closed at $9.80 on August 5, 2024, surged down to $8.01 the following day. Such a drastic drop left many investors worried about the future prospects of their financial assets.

Understanding the Class Period and its Implications

Investors who purchased or sold securities in the class period may face significant implications. The case centers on claims that the company's financial disclosures misrepresented its accounts receivable. It is alleged that debts owed by high-risk customers were inadequately disclosed, misleading investors about their true financial exposure.

Local Representation and Support

Kaplan Fox encourages affected investors to reach out for legal representation. The deadline for filing motions to serve as lead plaintiff in this case is approaching, with an important date set for potential motions. Investors are encouraged to act quickly to ensure they do not miss this opportunity.

Why Choose Kaplan Fox for Legal Representation?

Kaplan Fox stands as a prominent law firm with more than five decades of experience in complex litigation, particularly in securities matters. With several offices across the United States, their seasoned team is well-versed in tackling challenging legal issues. Their proven track record and dedication to clients make them a preferred choice for pursuing justice in class action lawsuits.

For detailed information about the case and the legal process, investors are recommended to visit the Kaplan Fox website. Consultations may provide essential insights into investors' rights and possible compensation for losses incurred during the class period.

Frequently Asked Questions

What is the class action lawsuit against ZoomInfo Technologies Inc. about?

The class action lawsuit relates to allegations of misleading financial disclosures, particularly the company's reported accounts receivable and revenue estimates that may have misled investors.

What is the deadline for investors wishing to join the lawsuit?

The deadline for investors to file motions to serve as lead plaintiff is November 4, 2024.

Who can join the class action lawsuit?

Investors who purchased ZoomInfo securities during the class period from November 10, 2020, to August 5, 2024, may be eligible to join the lawsuit.

What are the potential outcomes of this lawsuit?

Potential outcomes could involve compensation for investors who suffered losses due to the alleged misleading disclosures by the company.

How can affected investors get involved?

Affected investors can contact Kaplan Fox & Kilsheimer LLP for guidance on joining the lawsuit and understanding their rights.

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