Archived Investigations
ZoomInfo Technologies, Inc. (NasdaqGS: ZI)
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%.
The case is City of Pontiac Police and Fire Retirement System v. ZoomInfo Technologies, Inc., No. 24-cv-05739.