ZoomInfo Technologies (ZI) Financial Issues Case

W.D. Washington

Court

3:24-cv-05739

Case number

10 Nov 2020

Class period Start

05 Aug 2024

Class period End

04 Nov 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 Submission

Alleged Offence

Mismanagement,

Misleading Statements,

Omissions

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Shock Event Date

05 August 2024

Filing date

04 September 2024

Lead Plaintiff Deadline

04 November 2024

ZoomInfo Technologies (ZI) Financial Issues Case

Collecting participants…