If you invested in ZoomInfo and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses »
CLASS PERIOD
11/10/2020 - 08/05/2024
LEAD PLAINTIFF DEADLINE
11/04/2024
RELATED DOCUMENTS
Complaint 08/04/24
STOCK SYMBOL
NASDAQ: ZI
CONTACT
844-916-0895
[email protected]
The litigation focuses on the propriety of ZoomInfo’s repeated assurances that its business pipeline is strong and accelerating.
On Aug. 5, 2024, ZoomInfo said was incurring a $33 million charge against revenues that had previously been recognized in fiscal 2023 due to non-payments from customers and had been forced to implement a "new business risk model" to address elevated write-offs. In connection with its new risk model, ZoomInfo stated it was altering its operational procedures to require up-front payments from small business customers, indicating that many of ZoomInfo's previous customers had been unable to afford ZoomInfo's products and services. As a result, ZoomInfo further reduced its annual revenue guidance by $65 million at the midpoint, from a range of $1.255 billion to $1.27 billion to a range of $1.19 billion to $1.205 billion.
This news drove the price of ZoomInfo shares tumbling 18% on Aug. 8, 2024.
The lawsuit claims that ZoomInfo made false and misleading statements and failed to disclose that: (i) its financial and operational results during the Class Period had been temporarily inflated by the ephemeral effects of the COVID-19 pandemic, which had pulled forward demand for its database of digital contact information; (ii) material portions of its existing customer base were attempting to either substantially reduce their use of the company’s product or abandon it altogether; (iii) it had used manipulative and coercive auto-renew policies and threats of litigation to force customers into remaining with ZoomInfo for an additional contractual term even though such customers did not want to renew; and (iv) such tactics materially damaged ZoomInfo’s customer relationships.
FREQUENTLY ASKED QUESTIONS ABOUT THE CASE
- What is the ZI securities class-action case about?
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We are focused on whether ZoomInfo may have misled investors about its reported revenues, operating income, and customer and retention metrics.
WHAT SHOULD I DO?
- I worked at ZI. What should I do?
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If you were an employee of ZI, you may have valuable information that could be relevant to the investigation. Hagens Berman is one of the nation’s top whistleblower law firms, and has successfully represented many individuals who come forward with information regarding corporate malfeasance. Under the new SEC Whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, contact Reed Kathrein at 844-916-0895 or [email protected].
- There are multiple law firms participating, do I need to contact all of them?
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No, you do not need to contact all participating law firms. Generally, class-action investigations and lawsuits are consolidated into a single case to streamline the legal process, and attorneys from only a few law firms are selected to serve in a leadership role on the consolidated case. Hagens Berman has a proven track record of being appointed to leadership roles in complex, multidistrict litigation regarding investor fraud and other consumer rights issues, and your claim will be handled by attorneys who have helped secure approximately $325 billion in class-action settlements on behalf of individuals who have suffered due to corporate malfeasance and the wrongdoing of other powerful institutions.
AM I ELIGIBLE?
- What is the threshold amount to be eligible? What are “substantial” losses?
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The threshold amount and the definition of "substantial" losses may vary depending on a number of factors specific to the case, including the size of the company, market cap, shares outstanding and who holds them and the damages alleged by the fraud. In general, to be eligible to participate in a class-action lawsuit, you must be able to demonstrate that you suffered financial losses as a result of the alleged wrongdoing and that your losses meet the criteria set by the court or law firm. Fill out the form and submit your losses.
CAN I PARTICIPATE?
- Am I affected? What do I need to do to participate?
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If you were an investor in ZI, you may be affected and eligible to participate in the case. To determine your eligibility and potential involvement, fill out the form and submit your losses.
- Can any ZI investor participate?
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In most class-action investigations and cases, any investor who meets the eligibility criteria, including purchasing the shares during the relevant period, can participate, regardless of the size of their investment. Fill out the form to find out your rights.
- I bought on a non-U.S. Exchange. Can I participate?
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No. This investigation only covers shares bought on a U.S. exchange, i.e. NASDAQ or NYSE. Fill out the form to find out your rights.
- Am I included if I still hold my shares, or do I need to sell to participate?
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Participation is based on purchasing shares during the relevant period, rather than your current holdings. Accordingly, you do not need to sell to participate. Fill out the form to find out your rights.