SAN FRANCISCO, Sept. 10, 2024 (GLOBE NEWSWIRE) — Prominent provider of customer analytics and intelligence to sales and marketing teams, ZoomInfo came under intense scrutiny by investors and analysts again after turning in another dismal earnings report as seen by the recent class action lawsuit filing.
Hagens Berman urges ZoomInfo Technologies Inc. (NASDAQ: ZI) investors who suffered substantial losses to submit your losses now. The firm also encourages persons with knowledge who may be able to assist in the investigation to contact its attorneys.
Class Period: Nov. 10, 2020 – Aug. 5, 2024
Lead Plaintiff Deadline: Nov. 4, 2024
Visit: www.hbsslaw.com/investor-fraud/ZI
Contact the Firm Now: ZI@hbsslaw.com
844-916-0895
ZoomInfo Technologies Inc. (ZI) Securities Class Action:
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.
According to Reed Kathrein, the Hagens Berman partner leading the investigation, “We’re focused on whether ZoomInfo may have misled investors about its reported revenues, operating income, and customer and retention metrics.”
If you invested in ZoomInfo and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »
If you’d like more information about the ZoomInfo case and our investigation, read more »
Whistleblowers: Persons with non-public information regarding ZoomInfo should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new 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, call Reed Kathrein at 844-916-0895 or email ZI@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
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