SAN FRANCISCO, Oct. 03, 2024 (GLOBE NEWSWIRE) -- A class action lawsuit has been filed against ZoomInfo Technologies, Inc. (NASDAQ: ZI) and its senior executives, alleging that they misled investors about the company's financial health and customer base.
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
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ZoomInfo Technologies Inc. (ZI) Securities Class Action:
The lawsuit, City of Pontiac Police and Fire Retirement System v. ZoomInfo Technologies, Inc., seeks to represent purchasers of ZoomInfo Class A common stock between November 10, 2020, and August 5, 2024.
The lawsuit alleges that defendants made false or misleading statements about the company's financial performance, customer retention, and revenue growth during the class period. Specifically, the plaintiffs claim that ZoomInfo overstated its revenue and customer metrics by failing to disclose:
- The temporary nature of pandemic-related demand: The company's financial results were allegedly inflated by the short-term increase in demand for its products during the COVID-19 pandemic.
- Customer churn: A significant portion of ZoomInfo's customer base was allegedly attempting to reduce their use of the company's products or discontinue their services altogether.
- Coercive retention tactics: ZoomInfo is accused of using manipulative tactics to force customers into renewing their contracts, even if they did not want to.
- Hidden demand cliff: The plaintiffs allege that ZoomInfo's coercive tactics damaged customer relationships and created a future risk of decreased revenue as contracts expired.
The lawsuit points to several instances where ZoomInfo's stock price declined following revelations about its financial challenges and customer dissatisfaction. These include announcements in November 2022, July 2023, and May and August 2024, which led to significant drops in the stock price.
Hagens Berman Investigates Allegations
Based on these allegations, prominent shareholder rights law firm Hagens Berman has commenced an investigation. According to Reed Kathrein, the Hagens Berman partner leading the investigation, “The discrepancies between ZoomInfo's public statements and its actual financial performance raise serious concerns. Our investigation will delve deeper into these issues to protect the interests of investors.”
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
