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ZI.US
id: 1329
ZoomInfo Technologies (ZI) Financial Issues Case
W.D. Washington
Court3:24-cv-05739
Case number11/10/2020
Class period Start08/05/2024
Class period End11/04/2024
Lead Plaintiff motion deadline- $ZI stockholders filed a claim against ZoomInfo for hiding that COVID-19 temporarily boosted their finances.
- After the financial results on November 1, 2022, $ZI dropped by over 29%.
- ZoomInfo investors can join this case to be notified about potential recovery.
Case Details:
On November 1, 2022, ZoomInfo reported that customer pushback during contract renewals negatively affected its quarterly results. On this news, $ZI fell by over 29%.
Then, on November 16, 2022, ZoomInfo warned that customer pushback would slow revenue growth in 2023.
After that, on July 31, 2023, ZoomInfo also reported a drop in large clients and cut its annual revenue forecast by $50M, causing $ZI dropped by 28%.
Finally, on August 5, 2024, ZoomInfo announced a $33 million loss from unpaid bills, changed its payment terms for small businesses, and lowered its revenue forecast by $65 million.
After this news, $ZI fell more than 18%.
Based on these events, $ZI investors filed a claim against ZoomInfo, accusing the company of the following:
- ZoomInfo's financial results were temporarily boosted by the COVID-19 pandemic, which increased demand for their contact database.
- Moreover, aggressive tactics like auto-renewal policies and legal threats damaged customer relationships.
Considering all the representations, investors suspect ZoomInfo hid the fact that COVID-19 temporarily boosted their financials by increasing demand for their database.
Case Status
Lead Plaintiff Appointed
Alleged Offence
Mismanagement,
Misleading Statements,
Omissions
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
08/05/2024
Filing date
09/04/2024
Lead Plaintiff Deadline
11/04/2024