Kuznicki Law PLLC notifies investors that a class action has commenced in the United States District Court for the Western District of Washington on behalf of shareholders of ZoomInfo Technologies, Inc. who purchased shares between October 4, 2024 and August 5, 2024.
ZoomInfo and certain of its executives are charged with failing to disclose material information during the Class Period, violating federal securities laws.
On August 5, 2024, the Company announced its financial results for 2Q2024, disclosing that it incurred a $33 million charge due to non-payments from customers and had been forced to implement a “new business risk model” to reduce write-offs. Due to the new risk model, the Company altered its operational procedures to require up-front payments from small business customers, indicating that many of its previous customers had been unable to afford its products and services. Further, the Company 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.
On this news, the price of ZoomInfo’s shares fell from $9.80 per share on August 5, 2024, to $8.01 per share on August 6, 2024, or approximately 18%.
If you wish to choose counsel to represent you and the class, you must apply to be appointed lead plaintiff and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement for the class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the respective securities during the class periods. Members of the class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. No class has yet been certified in the above action. Appointment as Lead Plaintiff is not required to partake in any recovery.
Shareholders have until November 4, 2024 to request that the court appoint them lead plaintiff.